PUC lets GPL off the hook despite major failures in 2024

…would not impose penalties on power company

The Public Utilities Commission (PUC) has decided not to penalise the Guyana Power and Light Inc (GPL) for its shortfall, despite the GPL failing to meet seven of its eight key performance targets for 2024.

The findings of the PUC, revealed during a public review on March 13, paint a grim picture of the state-owned electricity provider. From power outages to billing woes and mounting financial inefficiencies, the GPL has missed crucial benchmarks designed to ensure it provides quality service and operational accountability.
According to the PUC, in the area of customer interruptions, GPL failed to meet both the System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI) targets. As a result, customers experienced an average of 123 interruptions against a target of 85, and outage durations totalled 122 hours versus a target of 90.
Factors that contributed to the GPL’s performance are listed as reduced generation capacity, frequent feeder trips, third-party damages to transmission infrastructure, and poor network resilience.
Voltage regulation performance also fell short despite expanded monitoring from one to four feeders. While three feeders met the 5 percent voltage threshold, two did not, mainly due to infrastructure weaknesses such as undersized conductors and weak transformers.
Similarly, GPL failed to meet its meter-reading targets, achieving only 91 percent for maximum demand (MD) customers against a target of 97 percent, and 85 percent for non-MD customers against a target of 90 percent.
The company has attributed the failure in this regard to manpower diversion caused by a global prepaid meter software upgrade and staffing losses; but PUC has expressed concern over GPL’s continued failure in this area, and has emphasized the importance of accurate meter readings for financial sustainability.
In contrast, the billing target in regard to GPL issuing MD bills within 7 days and non-MD bills within 8 days has been achieved; and GPL plans to expand digital delivery via WhatsApp to sustain and improve on this performance.
For accounts payable, the power company missed its 26-day target by a significant margin. Averaging 35 days as against the 26 days set, GPL has attributed this missed target to cash flow issues tied to receivables.
The PUC has indicated that although GPL has been a recipient of Government assistance, the company ended the year with numerous outstanding debts. The PUC has thus called for GPL to employ stricter fund retrieval practices in order to be able to stabilize its finances.
Further, system losses were recorded at 23.76 percent, missing the 22.2 percent target set; and the utility’s focus on meter upgrades has been cited as a reason for the weak loss reduction efforts. The PUC has deemed the losses financially untenable, and has urged GPL to adopt a structured approach to identifying and mitigating both technical and commercial losses.
Average availability has been reported at 80 percent, falling below the 85 percent target set. This, the GPL has said, is due to critical generator maintenance not having been done, with several units being beyond their intended operational lifespan. The Commission recognised the age-related issues and noted that new generation capacity is contingent on the upcoming Gas-to-Energy Project.
Despite GPL failing to meet seven of eight targets set, the PUC has chosen not to impose penalties for 2024. It has acknowledged GPL’s external challenges, including infrastructure damage and sector-wide issues like skilled labour attrition.
Importantly, GPL has outlined ambitious plans for 2025, including commissioning of the Gas-to-Energy Project, construction of extensive transmission infrastructure, development of substations, network expansion to new customers, and rollout of advanced metering systems.
These initiatives are expected to improve performance across most key areas, and the Commission is committed to closely monitoring GPL’s quarterly performance in an effort to improve efficiency.