Perennial Power Problems

Sep 14, 2009 Editorial

GPL has got to be the most detested corporation in the country – and most certainly so on the West Coast of Demerara.

As our newspaper has been reporting over the last few months, the intermittent blackouts that had plagued the area for years suddenly escalated to a point where the new norm is to experience more periods of power “blackouts” than power supply.

What makes the situation even more unbearable is the evident inability of the corporation to control the power supply and in the process precipitating massive rapid tripping that creates mayhem with the appliances and equipment of the beleaguered consumers.

West Coast’s problems with power, however, are not unique: the entire country has been suffering and stewing with blackouts for decades.

It is just that the smoke and mirrors, on which the power company runs, have collapsed at that location at this time: tomorrow we can be sure that another section of the country will be gnashing their teeth in frustration with “Christmas tree-type” power and voltage fluctuations.

GPL’s management has been promising relief with five-year plans since the beginning of the millennium – ever since the corporation reverted back to complete governmental ownership after the failure – but progress has just not kept pace with expectations.

The corporation’s failure to deliver the goods is not entirely its fault. After all, many of those that complain most bitterly and strenuously about blackouts are stealing electricity at a rate that would make the much maligned pirates of yore, blush. As GPL’s head reminded us recently, the rich as well as the poor steal electricity.

There are some communities where more persons filch electricity than pay for it: so Peter ends up paying for Paul. Very few companies can keep their heads above water much less retool their operations, if 11% of their products are pilfered every day as is GPL’s.

We have railed many times against the moral lacuna in our people to condone this pernicious practice – and condone it we do, since every Guyanese must know someone that steals electricity. Maybe it is time that GPL institutes a bounty to every Guyanese that turns in an electricity bandit – possibly a credit on their own power consumption.

But the corporation must take its share of the blame for an untenable situation. GPL falls under the bailiwick of the Prime Minister of this country and so cannot claim that it does not have the ear of the administration. The head of GPL recently revealed the following facts: “In Guyana –

(l) Our generation capacity is inadequate to meet peak demand.

(2) We have peaking units providing base-load service.

(3) There is no generation reserve.

(4) Our distribution network is loaded beyond economic levels by a factor of 2.5.

(5) Our control system is totally manual (when it ought to be automated). This of course describes a situation that is guaranteed to generate more blackouts than light – the situation that exists at the moment.

GPL’s plan to address the constraints that confront it in delivering a reliable supply of electricity to the people of Guyana calls for a US$160 million 5-year investment plan.

The Head was very candid, however, in identifying its greatest hurdle: securing the necessary financing. “The most difficult issue to negotiate with any investor is payment security. When you consider Guyana’s credit rating and our country risk, negotiating acceptable security that does not add to the national debt is very difficult.” He concluded plaintively, “You really have to be involved in these negotiations to appreciate the degree of difficulty.”

We believe, therefore that since the problem in fixing GPL has to do with “Guyana’s credit rating and out country risk” the responsibility lies with the administration rather than the corporation.

GPL has to pass the buck to its administrative head – the PM- and he, in turn should pass it on to where the buck eventually stops – the President. As one who has concededly returned us to creditworthiness via HIPC etc., etc., securing credit for GPL ought to be a cinch.

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