UNDOUDTEDLY a cheap, reliable and efficient electricity supply is a key factor to socio-economic development and would enable manufacturers to be competitive which is crucial in today’s world of trade liberalization and globalisation. Unfortunately, Guyana’s socio-economic development has been hampered because of severe problems with electricity supply which did not happen overnight but rather originated more than three decades ago when there was a virtual collapse of the  power generation system under the previous government.
When this government assumed office it faced a herculean task of restoring the tottering electricity supply system. To a large extent it has succeeded in bringing back the situation to an acceptable level of service but the current power company is still plagued with many problems and challenges for which consumers are paying the price. One of those problems is the excessively high power loss which translates into financial loss and high tariffs.
According to Prime Minister Samuel Hinds, who has responsibility for the power sector, Guyana Power and Light (GPL) continues to be plagued by loss of electricity which amounts to about $2B annually, and which is mainly through theft, pointing 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.
Mr. 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.
Defaulters 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.
The Prime Minister is right in that no one likes to use the “big stick” but no company in the world could sustain an annual loss of $2 billion for an indefinite period and therefore whatever measures are necessary to be taken to remedy the situation must uncompromisingly be taken.
Notably, GPL, along with a consultant, has developed a strategic plan to address loss reduction and one would hope that this does not gather dust but instead would be expeditiously implemented. Also this plan should include a component to deal with in-house corruption, and if it does not then such a component should be developed because there are employees of the company who aid and facilitate illegal power connections and other illegal and irregular practices. This leads to few getting rich at the expense of the company, the law abiding consumers, and therefore has to be eradicated or it will eventually become cancerous and create greater harm.
Of course in the longer term the Amaila Falls hydropower station should solve our electricity supply problem, but that is a fairly long time away and as such in the meantime we have to make our current power generating and distribution system as efficient, reliable and economical as possible.
Guyana is poised for economic take off and power supply is an essential factor to make it a reality and in so doing the people of this country could enjoy a better living standard and a more comfortable life.
Electricity is no longer a luxury but a necessity and therefore its generation and distribution has far reaching adverse consequences if it is not effective and efficient.