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Disparity in APUA Rates Raises Eyebrows

Disparity in APUA Rates Raises EyebrowsAntigua St John's - Eyebrows were raised at the recent figures showing up in the Antigua Public Utilities Authority (APUA) production summary report of March 2012, in which it was revealed that while the utility company charges $1.17 per kilowatt hour in Antigua, it charges less more than 50 percent ($0.53) in Barbuda.

Caribarena.com's investigations into the matter revealed that the utility company continues to “heavily subsidize” the sister island through an agreement made more than a decade ago.

Former Government Minister responsible for APUA, Robin Yearwood, explained that it was under the Antigua Labour Party (ALP) that the sister island was granted subsidy. But this was done with the understanding that the situation would be levelled in a phased manner.

“Since in our time we have been subsidizing the Barbuda power plant. Barbuda's electricity is highly subsidized by APUA,” Yearwood said.

He noted that when the agreement was made, households in Barbuda used to “pay by bulbs” for electricity since there was no electricity-reading meters installed at the time.

Caribarena.com spoke with Barbuda Councilman Fabian Jones, who said he had no knowledge of the agreement, or why Barbuda paid so much less for electricity than Antigua.

He said, “There has never been any discussion” on the subject since he has been on the Council.

“I am not aware if there is a written agreement. I don't even check my bill to see what the charges are,” Jones said.

He went on to note that he had heard of the agreement in passing, but had never seen an actual document.

“I have heard something like there is a difference in what Barbudans pay compared to Antigua,” Jones said, “but it was never discussed.”

He said the last time the Barbuda Council had any discussion with the Antigua Public Utilities Authority, Peter Benjamin was still the general manager.



Further, ALP Councilman Arthur Nibbs said he was aware that Barbuda’s electricity was subsidized, but he was not aware of the size of the difference.

As far as he understood, Barbuda was supposed to be paying a mere $0.05 less than Antigua for electricity.

“There was never a meeting since the new government took over,” Nibbs said.

He added, however, that based on his understanding of Prime Minister Baldwin Spencer's intentions, Barbuda could soon take control over its utility affairs through the Council.

Nibbs said that from all indications, the prime minister should soon be moving to transfer the management and control of the APUA-owned power plant in Barbuda to the Barbuda Council.

Caribarena.com attempted to reach APUA Chairman Clarvis Joseph, as well as the Authority’s PRO, Cathrona Samuel, for a comment on the matter, but was unsuccessful.

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6 Comments In This Article   

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RE: Disparity in APUA Rates Raises Eyebrows

#6 smokie » 2012-04-27 17:49

i have been to Barbuda several times and let me tell u only the women love us so they should not be getting any subsidy from antigua. they enjoy everything in antigua and we can,t build and live there.
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smokie

Robinhood and education

#5 tenman » 2012-04-27 12:57

Robinhood, please do me a favor and define what you understand the word subsidy to mean. Please list at least five "subsidies" which exist in Antigua but not Barbuda. Both Nibbs and Walker have in the past admitted that Barbuda currently depend on handouts from central government, in order to survive.

Quote:
He (Nibbs) also accused the Council leadership of becoming too dependent on hand-outs from the central government, and not seeking ways to become self-sufficient. “Barbuda has the wherewithal to develop to the point where it becomes a net contributor to the GDP, but it needs proper leadership to move the island forward,” he noted. Read more: http://www.caribarena.com/antigua/news/politics/99720-call-for-overhaul-of-barbuda-council-act.html#ixzz1tGDXYsZp
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tenman

APUA

#4 tenman » 2012-04-27 11:40

What amazes me is the cost for creating electricity is no more than 60 cents (46 cents per kilowatt hr related to fuel costs at the WPP and no more than 13 cents for costs related to the plant) yet consumers are expected to pay on average 1.17 per kilowatt hr. How could admin and distribution costs (57 cents) be even more than costs related to fuel? According to the draft national energy policy there is a 24 percent system losses (including technical losses of generation, transmission and distribution as well as economic losses) . This means for every dollar, APUA wastes 24 cents, which is excessive. In saint lucia, LUCELEC recorded system losses of 9.51% in 2010. Even after factoring system losses (28 cents), I am still at a loss in understanding why admin and distribution costs are so high. Sadly the authorities unwillingness to provide (audited) financial statements make it clear that the consumers are being shafted. Hearing the chairman claim, via Observer radio's March 25th big issues, that the last audited financial is from 2008 (which parliament is yet to see), should set off alarm bells.

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tenman

@Tenman

#3 Dig It » 2012-04-27 10:16

Tenman, couldn't agree with you more! It just doesn't make sense to have a power plant on Barbuda, given the population size and a "dysfuntional" council! It defeats the purpose! This would be another WPP, where the people wouldn't get their fair share of spending their hard earn money! Tenman, sounds to me that this is more the "intentions" (I may be wrong) of the Minister of Public Works behind this "drivel" idea! Yet, as you know, the Barbudans are very "proud" people, and, wouldn't be easily fooled like what we got in WPP!
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Dig It

Caribarena

#2 tenman » 2012-04-27 06:23

Thanks for trying to get at the bottom of this. I fail to see how putting the Barbuda Council in control of electricity generation will solve anything. It seems more like a recipe for further problems. The population size alone makes this idea of Barbuda having its own electricity company unsustainable because they would not be able to spread fixed costs. Who ever came up with this idea needs to stop the proverbial weed smoking.

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tenman

Less we forget

#1 Robinhood » 2012-04-27 04:32

Nibbs and Jones when contacted by Caribarena should remind the
People of this simple fact. Barbudans pay atleat 50 percent more
than Antiguans would pay for all services. This subsidy we received on
electricity should not be even talked about. We can point out numerous
Subsidy program in Antigua. This was an opportunity for Nibbs and Jones
Shine on representation for Barbuda but as we know both of them all
HUFF AND NO PUFF - we need to rethink our leadership on this island.
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Robinhood

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