GRENADA Electricity Services (GRENLEC) has expressed grave concern over the impact a recent amendment to the Electricity Supply Act by Government will have on its operation and rates.
The amended Act No 39, gazetted on December 31, 2013, mandates the company to pay 50 percent of ‘all customs and other import duties and landing tax on all plant, machinery, equipment, meters, instruments vehicles, fuel, lubricants and materials (including replacement parts and spares) imported by the company’, among other adjustments.
GRENLEC’S Interim Managing Director/CEO, Clive Hosten, lamented the fact that the company only received notification about the amendment in mid January, and suggested that it will result in an additional increase to customers in both the non fuel and fuel charges of the company.
He explained: “The Principal Act exempted GRENLEC from these duties and, as a result, enabled us to keep our rates at the lowest possible level. We are disappointed that there was no prior discussion with GRENLEC concerning the amendment in order to give us the opportunity to make an assessment of the potential impact it could have on rates.
“We are always more than willing to work with Government to find solutions that would avoid any additional burden on our customers and, to this end, our chairman, Robert Blanchard, had a special meeting with Government on Tuesday, January 28, to discuss the amendment and to pursue a solution to reduce the impact on the company, but more so, on our customers.”
Hosten noted that these discussions were ongoing and that GRENLEC was in the process of calculating the possible impact the amended Act was likely to have for presentation to the Government.
(The above was submitted by GRENLEC)