GPL earnings up from $14.7B in the first half of 2017
The technical performance of the Guyana Power and Light (GPL) remains plagued with inefficiencies, according to the 2017 Mid-year report.
Production of electricity increased marginally to 394,832 MWh in the first half of 2017 from 387,864 MWh for the first half of 2016.
However, there was also an increase in total losses from 29.3 percent in the first half of 2016 to 29.6 percent in the first half of this year.
At the start of the year, the power company said addressing loss reduction will be the priority this year as the third component of the Power Utility Upgrade Programme (PUUP) began. This programme deals with addressing loss reduction and improving the supply of electricity distribution.
The company was, however, able to increase its revenue. According to the mid-year report released last week, GPL earned revenue of $17.0 billion in the first half of 2017, up from $14.7 billion for the same period in 2016.
The increase was attributed to more timely payments.
Similarly, expenditure increased from $9.3 billion in the first half of 2016 to $12.6 billion in the same period of 2017.
This increase in expenditure was attributed to higher cost of Heavy Fuel Oil (HFO) for which the weighted average cost rose to US$48.70 for the half year from US$30.50 as at June 30th, 2016. In addition, GPL repaid the Government $500 million on the GCRG/GPL On-lending Loans for the 1st half of the year.
The Company’s outlook for the year has improved, with the budgeted deficit of $5.0 billion now expected to improve to a lower deficit of $771 million, the report stated.