State grants accounted for nearly a third of GPL revenue in 2024

State grants accounted for nearly a third of GPL revenue in 2024 — PUC Report

Jun 21, 2026 News

(Kaieteur News) – State grants propped up a significant portion of the Guyana Power and Light Incorporated’s (GPL) finances in 2024, with government subventions totalling $24.8 billion accounting for 31% of the utility’s total revenue, according to the Public Utilities Commission’s (PUC) 2024 Annual Report.

GPL posted total revenue of $79.76 billion in 2024, a year-on-year increase of $10.34 billion or 17.89%, driven primarily by growth in net electricity sales. Residential consumers led demand, accounting for 46% of power sold, while industrial users contributed 22%. Commercial customers, government accounts, and streetlighting made up the remaining 32%.

However, the headline growth figures mask deeper structural vulnerabilities. Electricity tariffs remain insufficient to cover core operational costs, and system losses — a long-standing challenge for the utility — continued to weigh heavily on the company’s bottom line.

GPL’s net loss narrowed to $4.31 billion in 2025, representing a margin of negative 5.41% — or roughly five cents lost on every dollar earned. Operating losses fell by 36.6%, declining from $4.29 billion in 2024 to $1.57 billion in 2025, a notable improvement.

Despite this progress, the PUC report underscored that GPL remains structurally dependent on government support. The $24.8 billion in State grants — equivalent to 31% of total revenue — reflects the extent to which fiscal policy, rather than operational efficiency, is sustaining the affordability and accessibility of electricity for Guyanese consumers.

Capital expenditure surged by 75% to $10.48 billion in 2025, up from $4.49 billion the previous year, as the company pressed ahead with infrastructure upgrades. However, the report also flagged an underinvestment gap of 3.9%, or $1.78 billion, which the Commission warned likely curtailed the operational benefits that new equipment would have delivered.

GPL fell short of several key performance targets during the 2025 public hearing review. Meter reading compliance reached 91% for Maximum Demand (MD) meters and 85% for non-MD meters — below respective targets of 97% and 90%. Management attributed the gaps to the loss of skilled personnel and the redeployment of staff toward a mandatory prepaid meter software upgrade.

On billing, GPL met issuance deadlines — delivering MD bills within seven days and non-MD bills within eight — but failed to hit accounts payable and receivable targets, citing cash flow constraints and delayed payments from customers. The PUC, in Order No. 1 of 2025, opted not to impose penalties, citing year-on-year improvements and the anticipated impact of the ongoing Advanced Metering Infrastructure (AMI) rollout.

As the Commission prepares for the 2026 hearing — which will assess GPL’s 2025 performance — it has signalled that target under the 2025–2029 Development and Expansion Programme remain in place and unchanged.

Preliminary data has, however, given the Commission cause for concern. The PUC noted that “only non-MD bill issuance appears to be trending toward the required target,” adding that the persistent shortfall in other performance areas suggests operational improvements have not kept pace with established benchmarks — a situation the Commission described as one it views “with significant concern.”

With GPL’s financial stability still contingent on government lifelines and key operational targets consistently out of reach, the path toward a self-sustaining, efficient national utility remains a work in progress.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

GPL, GPL revenue, Public Utilities Commission, State grants

Latest News