Padarath: Payment plan for T&TEC's $7b debt to NGC

Minister in the Office of the Prime Minister and Minister of Public Utilities Barry Padarath speaks at the post cabinet media briefing, Diplomatic Cebtre, St Ann's on August 7. - Angelo Marcelle

BARRY Padarath, Minister of Public Utilities, says the government will put in place a payment plan for T&TEC to address its $7 billion debt to the National Gas Company (NGC) as its gas-supplier, replying to questions at the post-Cabinet briefing at the Diplomatic Centre, St Ann's, on August 7.

In his initial presentation, he said cabinet was now reaffirming the UNC's campaign promise to reject the recommendations of the Regulated Industries Commission (RIC) for a hike in tariffs for the supply of electricity and water to consumers.

Newsday then asked about former minister Marvin Gonzales' call for the government to say what it would put in place of a tariff hike in order to funds the ever-rising cost of operations at T&TEC and to address its $7 billion debt to the NGC.

Padarath replied that the $7 billion had been allowed to balloon to that figure under the previous administration.

"This is a situation we inherited."

He said the government would talk to the NGC and T&TEC to enact a payment plan. Padarath said he was taking both a medium-term and long-term approach to this.

He added that $1.5 billion in receivables to T&TEC had been allowed to languish under the former government, as he singled out three ministries for blame.

Saying Gonzales had warned of possible pending blackouts, he dubbed the Arouca/Lopinot MP as "the new town crier."

Padarath said he had no intention of taking advice from his predecessor. He said the government would explore the use of solar power and wind energy.

Newsday asked if Gonzales' figures for the comparative costs of electricity – US$0.05 per kilowatt hour in TT versus US$0.15 as an average internationally – meant the government was too heavily subsidising the service.

Padarath said the government subsidised the cost at which T&TEC bought gas from the NGC. Asked if consumers should be encouraged to turn off used lights in their homes, he agreed on the need for a culture change in TT.

He said the RIC's recommended level of tariffs would be based on notions of the self-sufficiency of T&TEC as a company and on the quality of its product, that is, an electricity supply.

Padarath said he was not sure if the RIC had worked hard enough, even as he said the UNC had attended many consultations to make suggestions.

He declared that the government would not put the burden of T&TEC's debts onto the backs of taxpayers.

Pressed as to where money would come from to fund a T&TEC-NGC payment plan, he promised to articulate this within the next couple of weeks.