Home News New, existing GPL customers will save over $3B per month from GTE...
…1000 new households added to grid in 2024, more expected this year
New and existing Guyana Power and Light (GPL) customers are poised to save over $3B per month with the reduction in electricity prices when the Gas-to-Energy (GtE) project comes on stream in 2025.
During his End-of-Year press conference at State House on Tuesday, President Dr Irfaan Ali spoke of what the citizenry can expect from the Guyana Power and Light (GPL) in the new year, as it seeks to improve the delivery of service to customers.
One thing the public can look forward to is lower energy costs once the Gas-to-Energy project is fully operational. The president has stated that citizens will save at least $2.2 billion per month on energy expenses.
“In 2025, the 50 per cent reduction in tariff will take effect. What this means and what we have to plan for, is that based on current consumption, the consumer saving will be approximately $2.2 Billion per month,” President Ali said.
“That is $2.2 Billion back into the pockets of Guyanese every single month. With the reduction of price, GPL also expects new customers will be coming on the grid. And in their projections, the savings as a result of the new customers and existing customers, will be $3.3 Billion per month.”
President Ali meanwhile explained that gross customer consumption of electricity is expected to increase by 44 per cent per month. He also provided statistics on electricity trends in 2024, revealing that for the year 1000 new households were added to the grid.
“In 2024, a total of 124 MegaWatts of new generation was added to the grid. In 2024, approximately new households in 17 previously unserved areas, became first time beneficiaries of electricity.”
“So, the story wasn’t all bad. There’s a lot of bright spots and yes, there are challenges and I’ve held management accountable. And we will continue to hold them accountable. As I said, action will be taken. But we have to understand what we inherited,” the Head of State pointed out.
Some of those actions include a complete overhaul of the GPL distribution and transmission network, as well as works on 18 generator sets which have exceeded their scheduled maintenance overhaul period.
“Eighteen generators, representing 115 MegaWatts of installed capacity, require maintenance since the second half of 2024. So, you have 115 MegaWatts of power coming from generators that had to be maintained in the second half of 2024, rescheduled because of the situation we were facing. These generators are operating below capacity, posing high risk for failure.”
Meanwhile, the overhaul of the transmission network slated for 2025 is being done as part of a US$159 million contract signed with Indian company Kalpataru Projects International Limited (KPIL).
The GtE Project consists of five key components: laying the pipeline to bring the gas onshore – which has been completed by ExxonMobil, construction of the power plant and Natural Gas Liquid (NGL) facility, installing transmission lines, building a new control centre and upgrading the aged power distribution system.
Initially, the project was scheduled to be completed by the 2024 year-end but following setbacks in handing over some components including site preparation works, LNDCH4 was given an extension to next year to deliver the power plant.
However, the contractor and the Guyana Government are currently in a dispute over the deadline and associated costs but officials have assured that this issue is not affecting the project as works continue on the ground.
Only last week, Vice President Dr Bharrat Jagdeo disclosed that written and oral submissions have already been made by the parties to the three-member Dispute Avoidance/Adjudication Board (DAAB) that was set up to resolve this issue.
He said that supplementary submissions are due in mid-January and thereafter, the DAAB is likely to deliver a ruling by the end of the month and if that decision is not accepted by either or both parties then the matter could go to full arbitration.
The GtE contractor is making financial claims to the tune of US$50 million and wants more than the three-month extension that the Government has granted. (G3)
