GPL loss reduction to be strengthened in 2017 – CEO

Georgetown: The loss reduction component of the $1.6B Management Strengthening Programme of the Guyana Power and Light Inc. (GPL) is expected to be rolled out in January 2017, Renford Homer, acting GPL Chief Executive Officer, has said.

Cabinet had, last September, signalled its no-objection to the Inter-American Development Bank (IDB) and the European Union (EU) funded project, which was awarded to Manitoba Hydro International Limited (MHI).

Speaking during a recent press conference at GPL’s Kingston Head Office, Homer disclosed that MHI has been presented with a draft copy of the contract for the purpose of review, and it is likely that the contract would soon be signed. “So we can expect to see (MHI) on the ground within the first quarter of 2017,” he has posited.

MHI is a wholly-owned subsidiary of Manitoba Hydro, one of the largest and longest-standing energy utilities in Canada. The company assists power utilities, Governments, and private sector clients around the world in the efficient, effective, and sustainable delivery of electricity and natural gas. Utilising the experience and human resources of its parent, Manitoba Hydro, MHI has provided utility and asset management, consulting and training solutions to over 75 countries worldwide.

The GPL Management Strengthening Programme has two components. Component one is designed to improve the capacity of GPL’s management, while component two will focus on loss reduction.

GPL had, in March, indicated that its technical and commercial losses in 2015 had amounted to approximately 29.2 per cent of dispatched power. Those losses were as a result of disruption in transmission and distribution, due to aged infrastructure as well as electricity theft, meter tampering and other non-technical losses. GPL had, at the time, indicated that it was actively addressing the situation, and had approved a capital programme of $9.5B that was intended to replace old generating assets, construct and upgrade substations, expand and upgrade the transmission and distribution network, and expand smart metering, among other things.

The power company had also alluded to the Management Programme, being financed by the IDB with grant funding from the EU. This programme is intended to strengthen management, improve operational efficiencies, and reduce losses.

“The company recognises 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,” GPL had said.

It added: “Our customers are the ultimate stakeholders, and therefore (we are) requesting the public’s patience and understanding. Additionally, the company’s significant losses due to electricity theft, tampering of meters, meter by-passes and other forms of dishonesty result in higher operating costs; and GPL is requesting the help of the public in reporting and addressing these matters.”