BASSETERRE, St. Kitts - FOR quite some time, many persons have been questioning whether or not the Federation's government pays for its electricity consumption.
This question’s frequency increased when rumours of an impending rise in electricity tariffs circulated.
Although the rumours are said to be false, the question still remains as to whether or not the government pays for its electricity consumption.
SKNVibes sought to find out whether the government has an obligation to pay for its electricity consumption and this was confirmed by an official of the St. Kitts Electricity Company.
"Government is billed just like everyone else. They, too, are consumers and they are billed. The hospitals and schools and other government institutions are metered, just like everyone else, and they are billed," the official explained.
Hon. Shawn Richards had sanctioned the rumours, claiming that he had received information from a former employee of SKELEC about the possible increase and the reason for it.
"I have been privy to a memo from a gentleman who previously worked at the Electricity Department. In that memo he indicated that the Electricity Department is contemplating a further increase in the tariffs that one pays for electricity so even though the fee is already very high, one could very well be seeing further increases in the price of electricity.
"The gentleman also pointed out in the memo that one of the reasons why the Department would be experiencing a loss is due to the fact that the government itself which is one of the largest consumers of electricity does not pay for the consumption of electricity," Richards claimed.
When asked about this by a caller on the Prime Minister's weekly call-in show "Ask the PM", the Rt. Hon. Dr. Denzil Douglas quickly refuted the allegations.
"Let me make it clear, that is not true. Rates set by the electricity company cannot be set based on who is paying and who is not paying. There has to be a particular sensible formula applied in setting electricity rates; it is based on the cost of operating the services that are being provided to the people of St. Kitts and Nevis," he said.
The PM did not state whether or not the government pays for its electricity consumption, but explained that the government is billed and operates with the mind frame that compensations must be made for the services.
"There is an arrangement that has been put in place or continues to be put in place to ensure that there is an understanding as to how government will pay for the services that are being provided by the Electricity Company that belongs to the government, the government being the only shareholder in the private company.
In fact, we have been very strong in our position that government should be billed for the services that the Electricity Company provides to it. Government operates on the formula and with the thinking that it will have to make its own compensation to the company for the services that it is receiving," the Prime Minister said.
With no straight answers forthcoming, the public is still left to wonder if the government makes their electricity payments.
