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GPL reduces rates by 20%
The Guyana Power and Light Inc. (GPL) yesterday announced a 20% reduction in net rates for the supply of electricity across all tariff categories, effective today.
According to the power company, this was made possible after intensive review by the new Board of Directors in consultation with its Executive Management team.
“The company took into account the reduction in world market prices for fuel over the past year, which has favourably impacted its overall costs and wishes to pass on the benefits of these reductions to its customers,” GPL said in a statement.
World prices over the last two years fell from US$100 per barrel to US$38 yesterday.
The reduction will be applied as a five percent reduction on the basic rate of both fixed charge and energy charge, and a further 15 percent fuel rebate on the energy charge.
“Given that the company had previously applied an interim 10% fuel rebate on the energy charge in March 2015, the overall effect would see an additional 10 percent reduction on electricity bills.”
GPL explained that while it wants to reduce tariffs even further, it is constrained by its current level of overheads and by the technical and commercial losses, which in 2015 amounted to 29.2% of dispatched power.
“These losses include losses in transmission and distribution due to aged infrastructure, as well as theft of electricity, meter tampering and other non technical losses.”
The company said it is actively engaged in addressing these losses and has approved a capital programme of $9.5B.
“This programme is intended to replace old generating assets, construct and upgrade substations, expand and upgrade the transmission and distribution network, expand smart metering, amongst others.”
In addition, GPL disclosed that it is engaged in a Power Utility Upgrade Programme financed by the Inter American Development Bank (IDB) with grant funding from the European Union (EU) to the tune of US$64M. This programme is intended to strengthen management, improve operational efficiencies and reduce losses.
“The company recognises that there is some level of public dissatisfaction with its services and is committed to actively addressing all issues relating to this, including faster response times to customer queries, more efficient delivery of services, ensuring the integrity of its officers both internal and contracted, delivery of timely billing and information, amongst others.”
GPL said it also recognises its customers are the ultimate stakeholders and their patience and understanding must be appealed to.
“Additionally the company’s significant losses due to electricity theft, tampering of meters, meter by-passes and other forms of dishonesty result in higher operating costs and GPL is requesting the help of the public in reporting and addressing these matters.”
GPL said that customers whose billing cycle began in part of March and ends in April, will benefit from the reduction on their entire consumption for this period.
“GPL will, therefore, not prorate consumption when applying the reduced rate and fuel rebate.”
GPL New Rates
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