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Prime Minister Gaston Browne has defended the Government’s decision to waive long-outstanding electricity arrears, rejecting claims that the policy caused APUA’s financial strain.
The debts involved were generally between 180 days and more than a year overdue, he said, and had little realistic prospect of being recovered.
Browne compared the approach to a bank writing off a bad loan: leaving an uncollectible balance on the books overstates the value of receivables without producing cash.
By clearing the old debt and reconnecting households, APUA can begin collecting current payments from customers who otherwise would remain outside the system, he argued.
The Prime Minister said the policy was also rooted in compassion. He recalled seeing families without electricity before the 2014 election, including a student who charged a mobile phone at school and used its light to study at home.
A person who lives without electricity for six months, a year or longer is likely experiencing severe poverty, Browne said. The administration concluded that restoring service was both socially necessary and financially sensible.
He maintained that the amnesty should not be confused with the separate pressures created by rising fuel costs, unpaid current bills and APUA’s obligations to power suppliers.
Some people genuinely cannot afford to clear years of arrears. Giving struggling families a fresh start is the compassionate thing to do.
Then again…this is actually practical. If the old debt was never going to be collected, reconnect customers and collect their current payments. On another thought many people know during elections thats what happens so they maybe just tap paying bills
I understand the explanation, but I’d still like to know how much was written off and what safeguards are in place to stop the arrears from building up again.
Well, if the money wasn’t coming in anyway, might as well clean up the books and start fresh. But allyuh better make sure people don’t take advantage of it again.
How can anybody be upset about that. It’s helping people