[UPDATED] Young: PNM settled US$1.2b debt left by UNC

The PNM government has settled US$1.2 billion in debts in the energy sector which was left by the former UNC-led People's Partnership (PP) coalition government as a gift for the people of TT, Energy Minister Stuart Young said on Saturday.

He made this disclosure in his contribution to the budget debate in the House of Representatives.
Rejecting boasts made by Opposition Leader Kamla Persad-Bissessar on Friday about exemplary performance by the PP in energy, Young said the "irrefutable facts" are that the PP negotiated no new gas supply contracts and racked up US$1.3 billion in claims from energy companies because of its failure to negotiate those contracts.

This also caused a lack of natural gas being supplied to the National Gas Company (NGC).
Young said, "There were curtailments which means that gas shortages began."

While attributing some of those shortages being due to TT being a mature energy province, Young said, "The question of whether enough was being done in that period (May 2010- September 7, 2015)  to ensure a gas supply. The answer is no."

As a result of no new gas contracts being negotiated under the PP's tenure, Young disclosed, "NGC was faced with billions of dollars in claims.That is what we (PNM) faced when we came into government on September 9, 2015."

He publicly disclosed details of the claims facing the NGC as a result of inaction by the PP.
"The first claims were filed for five plants on August 3, 2015. Listen to the dates (while the PP was in office)."

Those claims amounted to US$436 million.

On August 24, 2015, there was another claim for US$100 million.

On September 8, 2015 (the day after the general election), Young said another claim was filed for US$100 million.

"On March 15, 2016, as a result of the shortage of gas between 2010 and 2015, a claim was filed for US$120 million."

Young said there were two separate claims filed on March 27, 2017 for US$73 million and US$370 million.

"And another claim filed in March 2019, as a result of the shortages between 2010 and 2015, of US$130 million."

Young declared, "That is the energy sector, UNC style."

The PNM entered office in September 2015 to find a gift left by its PP's predecessor of US$1.339 billion in claims against the  NGC. Young said this was $9.3 billion.

"Compare that to what was happening to the NGC between 2010 and 2015 with what can be described as looting of NGC treasury of $14 billion."

Young said, "You take away from the NGC $14 billion in cash and  add to that $9 billion in claims against NGC."

Against this background, he continued, the population was bombarded over last year by the UNC attacking the NGC.

Government MPs thumped their desks when Young declared that to date, Government has settled US$1.2 billion of those US$1.3 billion in claims. He said there is one outstanding claim of US$130 million "which we are working to settle.

Young also said Persad-Bissessar's claims of solid energy fiscal policies under the PP were also false.

He said  TT gained no energy revenue from any fiscal measures between 2010 to 2015.  In contrast, Young continued,  TT gained approximately $11 billion in revenues between 2016 and 2021, because of measures taken by  the PNM.

Young said to achieve this goal, "you need confidence and you need competence."

He also said Persad-Bissessar's budget contribution on Friday demonstrated that the UNC, in and out of government, has no understanding about the energy sector or its importance to  TT.

"They don't see the bigger picture." Young said decisions taken by previous PNM governments as well as the incumbent PNM administration "have put us at the forefront in the world of gas decisions and gas industry."

This story has been updated with additional details. The following is the original article.

ENERGY Minister Stuart Young has said that the PNM government has settled US$1.2 billion in debts in the energy sector which was left by the former UNC-led People's Partnership (PP) coalition administration as "a gift" for the people of TT.

Young made this disclosure in his contribution to the budget debate in the House of Representatives on Saturday.

Rejecting boasts made by Opposition Leader Kamla Persad-Bissessar on Friday about exemplary performance by the PP in energy, Young said the "irrefutable facts" are that the PP negotiated no new gas supply contracts and racked up US$1.3 billion in claims from energy companies because of its failure to negotiate those contracts.

Government MPs thumped their desks when Young declared that to date, Government has settled US$1.2 billion of those US$1.3 billion in claims.

Young also said Persad-Bissessar's claims of solid energy fiscal policies under the PP were also false.

He said TT gained no energy revenue from any fiscal measures between 2010 to 2015.  In contrast, Young continued, TT gained approximately $11 billion in revenues between 2016 and 2021, because of measures taken by the PNM.

He said to achieve this goal, "you need confidence and you need competence."

He also said Persad-Bissessar's budget contribution on Friday demonstrated that the UNC, in and out of government, has no understanding about the energy sector or its importance to  TT.
"They don't see the bigger picture."