Major discrepancy uncovered in electricity generation and billed sales-GPL report reveals

Major discrepancy uncovered in electricity generation and billed sales—GPL report reveals

Jun 06, 2024 News

Kaieteur News – In a recently released performance statistics report, it was disclosed that there is a persistent and growing gap between electricity generation and billed sales for over a decade by the Guyana Power and Light (GPL).

The annual data, which covers the period from 2014 to a forecast for 2024, reveals a significant and concerning trend for the national utility company.

The report shows that the difference between electricity generation megawatts hour (MWh) and billed sales for each year from 2014 to 2024. This discrepancy can be understood as the difference between the total amount of electricity generated by GPL and the amount of electricity that is actually billed to customers.

The total amount of electricity generated and the amount actually billed has been steadily increasing over the years, especially noticeable from 2019 to 2024.

The growing gap between electricity generation and billed sales can be attributed to several factors, including transmission losses, electricity theft, and inefficiencies within GPL’s distribution network. These discrepancies pose significant financial challenges for GPL, as unbilled electricity represents lost revenue for the utility company.

Head of the Executive Management Committee at GPL, Kesh Nandlall, recently disclosed that the company experiences about 25% in technical and commercial losses. He shared that approximately 13% of these losses are due to electricity theft.

Notably, the GPL Executive had stated that the company is unable to isolate areas where significant electricity theft occurs and explained that in order to do so; the company would require substantial investment.

Nandlall had also mentioned ongoing programmes aimed at reducing electricity theft, though they are challenging and sometimes risky for employees. He noted that while utilities typically face a natural loss factor of 3-5% due to infrastructure, GPL’s 25% loss significantly increases operational costs, as the company sells 25% less electricity than it generates, necessitating more generation to meet demand.

While GPL has been actively working on strategies to mitigate these losses, like upgrading infrastructure, the persistent increase in discrepancies suggests that more comprehensive and effective solutions are required. This year; some $95.7 billion was allocated for the energy sector. Included in the sum are monies to support GPL’s expansion and operation.

Table showing discrepancies in GPL’s electricity generation versus billed sales for over the past decade:

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GPL, Guyana Power and Light, Infrastructure, Kesh Nandlall, programmes

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