Grenada’s long saga with Grenlec over increasing the rate charged to customers for electricity is a worrying problem, since the Grenada Electricity Company (GRENLEC) was sold to WRB Enterprises of Florida by the National Democratic congress (NDC) in 1994.

What’s even more frustrating and adding insult to injury was the NDC plan of affording WRB the facility to increase electricity rates when they so please with the stipulated tenet in the Share Purchase agreement that dismantled the Public Utilities Commission.

It’s the only entity that had the legal authority to prevent any unjustified rate increase and which was the only safeguard for the Nation’s people as it relates to increasing the cost of electricity.

Part of their responsibility was to monitor the functioning of the company to ensure that it is efficient and that any rate increase was dully applied for and had to pass the necessary scrutiny. With its absence the authority to increase rates was in GRENLEC's hands.

To reestablish a fully legally constituted Public Utilities Commission with similar powers to the one that was disbanded by the NDC in 1994 meant that the Grenada Government had to table new legislation in Parliament.

This position was considered but Government had to balance it off against the possibility that WRB may choose to challenge its decision in court and the resulting huge sum it will have to find for litigation…monies the country could not afford.

The New National Party (NNP) commends the Government for seeking to find new ways to ensure that the cost of electricity is reduced.

Presently, Grenada has the highest rate per kilowatt hour in the OECS.

NNP also praises the Government for collaboration with the government of St. Lucia for the bold initiative in reducing the cost of electricity with the launching of the World Bank-supported Eastern Caribbean Energy Regulatory Authority (ECERA).

This ECERA regulatory authority, which will be operational in April of this year, will do for electricity what ECTEL did for the Telecommunications industry.

NNP expects this move will support Government’s decision to purchase majority shares in GRENLEC and will foster the enabling environment for foreign direct Investment which the country badly needs in this period of economic revival.

As a ruling political organization we accept the fact that in this period of Structural Adjustment and Shared Sacrifice, the Government must introduce new measures to raise revenue to narrow the fiscal gap which stands monthly at EC $15 million.

 Government collects EC $35 million every month in revenue and spends EC $50 million…a situation which is untenable.  In this regard, NNP supports the Government in reducing the rate of concession given to GRENLEC from 100 percent to 50 percent.  

In a recent Press Release by the Ministry of finance, GRENLEC received concession from Custom and Excise Division to the Value of $31.8 million.

Senator Burke who is aware of the size of the fiscal gap and the cash flow problems - only months ago he was the Minister of Finance, but instead choose to condemn the revenue-enhancing measures of the Government is a clear indication of his intention to mislead the nation. This the NNP sees as “Unfortunate, Reckless and Unpatriotic”.

As a responsible political organization, we call on the people of Grenada, Carriacou and Petite Martinique to outrightly reject Senator Burke’s comments for they are nothing else but pitiful.

Public Relations Department

New National Party