The Guyana Power and Light Incorporated has announced an additional 10 percent reduction in net rates for electricity supply across Guyana effective from tomorrow April 1, 2016.
A release from the Power company says this decision was made following “intensive review” by the new Board of Directors, along with the Executive Management team.
This reduction will be applied as a 5 percent reduction on the basic rate of both fixed charge and energy charge, and a further 15 percent fuel rebate on the energy charge.
GPL had previously applied an interim 10 percent fuel rebate on the energy charge in March 2015, therefore the overall effect would see an additional 10 percent reduction on electricity bills.
Customers whose billing cycle begins in March and end in April will benefit from the reduction on their entire consumption for this period. GPL says it will not prorate consumption when applying the reduced rate and fuel rebate.
The reduction in world market prices for fuel over the past year was taken into consideration, the company stated.
The Company admits 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.”
It says it is constrained by its current level of overhead costs and technical and commercial losses, which in 2015 amounted to 29.2 percent of dispatched power.
GPL also disclosed that it is actively engaged in addressing these losses and has approved a capital programme of $9.5 Billion. This programme, it notes “is intended to replace old generating assets, construct and upgrade substations, expand and upgrade the transmission and distribution network, expand smart metering, amongst others.”
It is also engaged in a Power Utility Upgrade Program financed by the Inter American Development Bank (IADB) with grant funding from the European Union (EU) to the tune of US$64M. This Program is intended to strengthen management, improve operational efficiencies and reduce losses.
The Company’s significant losses due to electricity theft, tampering of meters, meter by-passes and other forms of dishonesty has been blamed for higher operating costs and GPL is requesting the assistance of the public in reporting and addressing these matters.