GPL loses more than $2B as electricity theft drives 13–15% losses

The Guyana Power and Light Inc (GPL) is grappling with losses of about 13 to 15 per cent, with each one per cent representing more than $200 million in lost revenue, as electricity theft and other commercial losses continue to weigh on the utility.
GPL Chief Executive Officer (CEO) Kesh Nandlall explained during a recent press conference on Tuesday that the utility had conducted a number of exercises along the Soesdyke-Linden Highway and in surrounding areas to address issues affecting the reliability of the electricity service. Only recently, GPL removed illegal electrical connections during an enforcement operation in several communities across Region Four (Demerara-Mahaica). GPL officials warned that electricity theft overloads transformers and feeders, causes severe network failures and poses critical safety hazards, including electrocution and structural fires. Underscoring that electricity theft is a criminal offence punishable by law, the company announced that nationwide loss-reduction exercises will continue, while urging citizens to report illegal hookups via GPL’s confidential hotlines at 226-2600, 0475, or WhatsApp at 699-4882.

During the press briefing on Monday, Nandlall explained that GPL conducted exercises in areas such as Swan and along the Soesdyke-Linden Highway, as well as in other areas east of the highway, where it identified and removed issues affecting the distribution network. According to Nandlall, these issues can affect the reliability of the service by causing feeders to trip, resulting in disruptions to customers. “[Due to] persons who illegally take electricity are not properly connected to the system, as a result of that, you can have the quality of the power in that particular area affected. In terms of safety, it is unsafe, extremely unsafe, we normally put out a lot of publications, and you see how those wires are run all over the place, using all kinds of different types of wires, and how they run all between the trees. Any child can go there, pass, and get shocked, right? And we continue to remove them.” Nandlall said that GPL had removed hundreds of illegal connections during recent enforcement exercises, including approximately 200 in one area and thousands in just weeks of investigating electrical theft.

“We have already removed, for a couple of weeks—I’ll admit, in the last couple of weeks—I’m telling you, one area might have had 200 removed in one area, right? And that’s one exercise. “And we have put out the numbers, and in that 200, in that 200 in one area, I think it was 20 in that particular area, we could use almost—how much—500 kilowatts (kW)? 500 kW, which is half a megawatt [but] When we have a smart grid, we’ll be able to measure that loss directly.”

Disruptions
Meanwhile, GPL Divisional Director of Engineering Services Ryan Ross said electricity theft is another contributing factor to the utility’s losses, noting that it not only results in financial losses for the company but also contributes to disruptions in the electricity service. “It contributes to an overall total of about 13 to 15 per cent of losses, right? So there are two components, as you mentioned: technical and commercial. Technical is line losses emanating from transformers, lines and so on. Those you can do something about, but it’s a very costly exercise.”
Ross said the financial value of the losses is significant, noting that one per cent of losses was, the last time it was calculated, approximately $200 million. “It’s in excess of $200 million for one per cent. One per cent, the last time this was calculated, is about $200 million. A million US dollars for one per cent. We do prosecute. But the non-technical losses, or the commercial losses, as we call them, right? The diversion and theft of electricity is a significant issue. So they all come together to form almost 15 per cent of the losses. Each one of those illegal connections contributes to that, and that’s significant. So, in sum total, it’s right around that number.”