GPL HAS BEEN PUT TO SHAME!

Jun 20, 2011 Features / Columnists, Peeping Tom

The decision of the local beverage giant, Banks DIH to acquire another generating facility to power more of its operations may have been decided on before the government decided to build the Amalia Falls Hydroelectric Facility.
Banks DIH has long been generating its own power since it is cheaper to do so than to purchase power from the national grid. This constitutes a serious indictment against the efficiency of the local power company. That it is less costly for a company to install and operate its own generating facility than to take electricity off the national grid speaks volumes about the high cost of electricity in Guyana.
Consumers have been promised that electricity tariffs are going to be substantially slashed when the new hydroelectric project comes on stream. But no one is waiting on that promise to materialise because with the project costs that are being touted, who knows what will be the final cost of power sold. The government has been strangely reluctant to confirm whether a power sales agreement with the developers of the hydro facility has been signed and if so, at what price. In the absence of any public confirmation about any such agreement, the public may be justified in not getting too excited about the promise of reduce electricity tariffs.
Even before this promise, many firms, frustrated by the unreliable and high cost of power from the national grid, began to move towards self- generation. This requires a huge investment and yet these firms can turn around and still generate power cheaper than GPL. This is a disgraceful situation and one that is an embarrassment to the government, which since it came to power, has been trying desperately to restore the electricity system.
GPL now generates more electricity than has ever generated in the history of Guyana, but most of this electricity comes from fuel oils. And with the high prices for oil, the GPL is no doubt running at a loss.
GPL needs to get its act together. The fact that a private firm can produce electricity far cheaper than the GPL, which has multiple times the generating capacity of the private firm, puts to shame the power company.
It also shows that consumers are being seriously shortchanged in Guyana because power is way too costly.
A major part of the problem is however the consumers themselves. There are significant line losses and GPL is losing hundreds of millions each month because of electricity theft.
GPL is making efforts to reduce these losses but unless there is a complete metamorphosis of attitudes by the consuming public things are not going to improve.
GPL itself faces many challenges. When someone is taken off the grid for non-payment, they cannot be reconnected unless their indebtedness is settled, and in some instances they would have owed millions. The GPL cannot be expected to write off these debts so as to reconnect these individuals and reduce the temptation to steal electricity.
GPL should never have been put in a situation whereby some individuals owe the company millions. They should be able to levy on the personal assets of those who owe them so as to ensure payment.
The present practice of GPL having to haul persons before the Courts is not going to work. Electricity theft is too pervasive.
The pre-paid meters may be the way to go but Guyanese are so ingenious that some of the crooked ones will find ways to bypass this prepaid meter and steal electricity. If there is any person who can tamper with a tamper-proof meter that person may very well turn out to be a Guyanese.
There is a growing culture of persons who feel that it is okay to steal electricity.
The government should seriously consider decreasing electricity tariffs so as to encourage those big companies to also return to the national grid. At the same time, they should pass laws to allow the power company greater options in collecting their debts. If hire purchase companies can move in and seize assets, why can’t the electricity company do the same in relation to those who owe them?
People are stealing electricity not because of high tariffs, but because they can escape the consequences. Even if electricity tariffs were reduced by half, those persons stealing would still steal. But once they stand a high chance of losing financially and materially they will not steal electricity.
The day a consumer stands to lose his or her television set, stereo system or refrigerator or stove because of non-payment of an electricity bill, that will be the day that electrify theft hits rock bottom.

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