A change long anticipated by all consumers

Apr 03, 2016 AFC Column, Features / Columnists

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With effect from last Friday, 1st April 2016, electricity charges across the board were reduced in all tariff categories from households to small and large businesses and productive industries.  This change has been long anticipated by all consumers on the GPL’s power grids from Berbice to Essequibo.
It was made possible after the new Board of Directors conducted an intensive review and had consultations with the company’s executive management team.  The power company issued a statement last week stating that the decision to cut electricity charges was influenced by reduced prices for all classes of fuel on the world market.  The company’s fuel expenditures were reduced and now it could pass these benefits on to its customers.
This reduction will be applied as a 5% reduction of the Fixed Charge and the Energy Charge, and an additional 15% Fuel Rebate.  Consumers had been enjoying a 10% Fuel Rebate on the energy charge since 2015.  GPL said that the overall effect is an additional 10% reduction on electricity charges.
The power company is still grappling with high overhead expenditures caused by approximately 29.2% worth of technical and commercial losses.  These losses come about mostly from the aged power transmission and distribution infrastructure as well as deliberate theft of electricity, meter-tampering “and other non-technical losses”.
But, these shortcomings will soon be addressed through a G$9.5B Capital Enhancement Programme.  This programme, it is intended, will replace old generation machinery and peripherals; construct and upgrade several sub-stations; expand and upgrade the power transmission and distribution network; and expand the areas and distribution of ‘smart meters’, among other things.
In addition, GPL said 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.
GPL said in its statement that it “recognises that there is some level of public dissatisfaction with its services” but the company requests the public’s patience and understanding.
The new tariff structure became effective on Friday 1st April 2016.  However, the customers whose billing cycle began in March and ends in April will benefit from the reduction on their entire consumption for this period. GPL will not prorate consumption when applying the reduced rate and fuel rebate.
ELECTRICITY IN THE HINTERLAND
Six thousand homes in 25 hinterland communities will receive solar home systems following the launch of the Sustainable Business Models for Rural Electrification and Energy Access in Guyana Project by the Ministry of Public Infrastructure (MPI).
The project which is being spearheaded by the MPI’s Hinterland Electrification Unit (HEU), was launched on March 14, 2016.  It is being executed in collaboration with the not-for-profit company, CARIBSAVE, alongside the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group.
During the launch at Cara Lodge last week, Minister Annette Ferguson noted that more than 80 percent of hinterland communities currently have no access to electricity. In comparison, the coastlands are electrified to nearly 100 percent.
She also pointed to the glaring disparity among the electricity rates extant in the various regions, saying that this must be rectified.  In pursuit of this goal, Budget 2016 has allocated $110M specifically to close the rate gap that exists in urban areas and the hinterland.
The hinterland remains the place where much of Guyana’s natural wealth resides.  It therefore must be the place where the government creates the enabling infrastructures to improve the residents’ lives and livelihoods, and to improve the facilities for conducting business in this 21st Century.  Ultimately this means that Energy Supply must be enhanced across the hinterland from Bartica to Mabaruma.
Rural electrification develops people socially.  It enhances the environment and our care of it.  It opens up possibilities for economic growth and in general, will close the gap between the quality of life in town and country.
Electrification of the hinterland communities has far-reaching benefits for the delivery of education.  Just imagine.  Children will be able to see well while doing homework at night.  This aids comprehension that will transfer to the classroom and their participation and grasp of lessons taught in class.  They will have computers and electronic learning devices, and when the fibre optic cables and facilities are installed under the E-Government programme, they will be able to participate in online classes not just at the senior high schools in Georgetown, but in others in neighbouring countries, and maybe in faraway places.  The possibilities are wide.
On the Health front, think about refrigerators to properly store and preserve the shelf life of medicines and human samples.  Think about well-equipped hospitals with functioning, brightly lit operating theatres with doctors, nurses and auxiliary staff able to deliver the level of services the residents should have.
Think about Community centers and the benefits for residents who wish to congregate after dark to play games and plan community activities.  And then there are living conditions and improved facilities to generate personal income.  Energy, particularly electricity, changes lives and always for the better.
The key objective of the Hinterland electrification project is to improve sustainable, affordable and reliable access to renewable energy technologies in rural communities in Regions 1, 2, 7, 8, and 9.   The project is also an integral part of Guyana’s broader Sustainable Energy Programme.
The project will also focus on the development of business models for solar photovoltaic systems which will be installed in community buildings in the 25 communities. Additionally, community members and other energy sector agencies will be trained in technical, operational, social and environmental aspects of the project.
MIF has contributed US$1.3M to the US$1.7M project.  The period over which this programme is valid extends from 2016 to 2019.  The list of 25 villages is being finalized and will be announced shortly.

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