…. about $2B annually, mainly through theft
THE Guyana Power and Light continues to be plagued by loss of electricity which amounts to about $2B annually, and which is mainly through theft.
Loss reduction, as explained recently by Prime Minister Sam Hinds, who has overall responsibility for the energy sector, is more about customers paying for what they are consuming rather than achieving higher amounts of customer bill payment.
GPL, along with a consultant, has developed a strategic plan to address loss reduction. He pointed out that at the end of 2009, overall losses as experienced by the GPL was 34.3 per cent, as against 33.5 per cent at the end of June 2010.
And this is despite GPL employing stringent measures such as rigid campaigns and prosecutions.
Earlier this month, the National Assembly voted in favour of the Electricity Sector Reform (Amendment) Bill which empowers the GPL to refuse service to persons convicted on multiple offences under the Act. The new law also largely sets out harsher penalties for persons caught in the act, among its other provisions.
Prime Minister Samuel Hinds has described the “big stick” measure as an approach which is being reluctantly pursued, as it is not the Government’s desire to fine or imprison defaulters, but because various other methods have failed, including attempts to educate the public against electricity theft.
Noting that public perception in some parts is that electricity should be supplied as a right, the Prime Minister pointed out that the supply of electricity carries a heavy cost.
And in addition to seeking to eradicate the widespread theft of electricity theft among both residential and commercial consumers, the legislation targets too persons working in the sector who are involved in corrupt transactions.
Defaultors now face twice the fine and twice the period of imprisonment if convicted.
Commercial loss reduction, it was pointed out, accounts for 20 per cent of overall losses and requires less capital to address as against technical loss reduction which is capital intensive.
As a result, GPL, since 1997, has been placing its focus largely in that area.
Prime Minister Sam Hinds noted as well that GPL’s commercial loss reduction initiatives are focused on improving the security and accuracy of the billing system, replacement of defective meters and seeking to reduce electricity theft.
To this end, GPL has effective May 24 last instituted a new customer information system at the cost of US$2.8M.
Over the past four years, over 20,000 defective meters have been removed and over 34,000 illegal connections over the same period, in over 639 raids.
Also, over 1,575 individuals have been charged with electricity theft, with over 450 cases still pending in the court, he noted.
The US$34.6M Chinese Infrastructure Development Project, which will see seven new substations and 100Km of 69Kv transmission lines being constructed, would result in technical loss reduction benefits of about 2.1 percent.
The Prime Minister also made mention of an explicit life line support in place for all power utilized for up to 75kw per hour.
This privilege is afforded residents of Moco Moco Village in Lethem region and consideration is being given for it to be extended to some other areas as well.
He, reiterated though, that the survival of GPL is still questionable because of the high losses incurred.