Opposition legislators in Suriname urge gov’t to reverse hike in electricity rates

PARAMARIBO, Suriname, CMC – Opposition legislators in Suriname have called for the Government to reverse the recent increase in electricity rates, as trade unions gear up for protest action later this week to signal their own disagreement with the new charges.

The measure initiated by the International Monetary Fund (IMF) is the main reason for the strike action called for on Thursday and Friday by the trade union movement.

President Chandrikapersad Santokhi has held talks with several trade union leaders in a bid to prevent the industrial action.

In February, the government announced plans to phase out subsidies for gas, electricity and fuel as it seeks to reduce expenditure and keep within the guidelines of the IMF.

The government said while a social programme is being implemented to help vulnerable groups in the society, it is not sustainable to continue the subsidies.

According to the government, diesel must be reduced by SRD10 per litre, with electricity SRD260 per connection and “gas bombs' of 28 pounds, more than SRD400 each.

Several opposition parties, including the main opposition National Democratic Party (NDP), have described the increased electricity rates as “illegal” claiming that the correct legal procedure was not followed.

“The government acts first and then comes to parliament,” said the NDP's Melvin Bouva, who tabled a motion on the issue in the Parliament on behalf of the opposition parties.

They say that the Energy Sector Plan, as required in the Energy Act, has not been submitted by the Energy Companies Suriname (EBS) and that the government has also ignored the advice from the State Council.

But Energy Minister David Abiamofo told legislators he could not make any commitments to reverse the increase.

“I cannot do that because that will mean that the EBS will have to dig deeper into its pockets, but the call is clear. I will take this to the council of ministers,” he added.

Abiamofo acknowledged that the rate increase is an unpopular measure, but said it is necessary so that EBS can continue to provide services to society at a level that the community desires.

He said that the phasing out of subsidy to the EBS by government is an urgent need, a measure that is also included in the recovery programme with the IMF, noting that consumers utilising up to 900 kwh, especially small households, will continue to be subsidised.

The opposition motion is calling for the government to eliminate inefficiencies at EBS and the national oil company Staatsolie before issuing new increases.

The increase in electricity rates were also criticised by several members of the coalition government, but they however did not support the motion.

Meanwhile, in his discussions with the trade union leaders, Santokhi said that a reduction of the subsidy of SRD 5.2 billion is necessary to relieve the pressure on state expenditure.

He said the government in a bid to protect the members of society had agreed to implement the rates in three categories ranging from 400 to 900 kWh.

Experts from the Ministry of Finance and Planning gave a presentation on the current financial situation of the country and Santokhi said “Suriname is currently in a phase of economic stabilisation, with a growth of three per cent.

“The government is committed to developing a model together with the trade unions that benefits society,” said the government leader.

The talks will continue on Monday, May 6.

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