PUC will not impose penalties against GPL despite major failures last year 

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

The findings, 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, GPL missed crucial benchmarks designed to ensure quality service and operational accountability.

According to the Commission, 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 totaled 122 hours versus a target of 90, with contributing factors listed as reduced generation capacity, frequent feeder trips, third-party damages to transmission infrastructure, and poor network resilience.

Additionally, 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.

GPL similarly failed to meet its meter reading targets, achieving only 91 percent for maximum demand (MD) customers against 97 percent and 85 percent for non-MD customers against 90 percent. The company attributed this to manpower diversion caused by a global prepaid meter software upgrade and staffing losses, but PUC expressed concern over the continued failure in this area and emphasized the importance of accurate meter readings for financial sustainability.

In contrast, the billing target was achieved, with GPL issuing MD bills within 7 days and non-MD bills within 8 days. GPL plans to expand digital delivery via WhatsApp to sustain and improve this performance.

For accounts payable, the power company missed its 26-day target by a significant margin, averaging 35 days due to cash flow issues tied to receivables. PUC in a report indicated that despite government assistance, the company ended the year with numerous outstanding debts and the Commission has called for stricter fund retrieval practices to stabilize finances.

Further, system losses were recorded at 23.76 percent, missing the 22.2 percent target. The utility’s focus on meter upgrades was cited as a reason for the weak loss reduction efforts. The Commission deemed the losses financially untenable and urged GPL to adopt a structured approach to identifying and mitigating both technical and commercial losses.

Lastly, average availability was reported at 80 percent, falling below the 85 percent target. This was due to critical generator maintenance, with several units 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 failing to meet seven of eight targets, the Commission chose not to impose penalties for 2024. It acknowledged GPL’s external challenges, including infrastructure damage and sector-wide issues like skilled labor attrition. Importantly, GPL has outlined ambitious plans for 2025, including the 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.