Dear Editor,
Over the past several months there was an increase of 15% in electricity tariff making the cost per KWH paid for electricity in Guyana one of the world’s most expensive. At the same time daily black-outs and brown-outs lasting for varying periods have been the order of the day in various parts of Georgetown.
It seems that Guyana Power and Light Inc. (GPL) is on the skids. Lack of strategic direction and with poor management skills in place, its ability to motivate and direct its workforce to manage GPL efficiently is reflected in the poor, expensive and shoddy service it provides its customers. With such a dismal record of management, any traded public company would have had heads rolling but since GPL is a government entity, it is business as usual.
GPL is supposed to be managed by a Chairman and Board of Directors under the Prime Minister’s portfolio. However, policy formation and direction seems to emanate from other Government ministries leaving GPL customers in a confused state to comprehend who is really responsible to provide GPL with the leadership and vision necessary to formulate and implement policies necessary to achieve the strategic objectives of providing its customers with a reliable, efficient and cost effective service.It is evident that GPL lacks strategic planning. Faced with a crisis of mounting fuel costs coupled with obsolete equipment and a shortfall in generating capacity, it is now scrambling to install new generating plants and convert its existing diesel engines to use heavy fuel oil. These upgrades are still to be installed but in the interim its customers continue to suffer the inconveniences of blackouts, brownouts, high costs and the indignity of living a low quality life.
GPL should have been seeking out alternative sources of electrical power generation a long time ago and have in place plans to execute and achieve set goals. The proposal to convert existing diesel plants to use heavy fuel oil is unlikely to significantly affect the current cost for electricity to benefit its customers since the prediction is that the price of crude oil will continue to seesaw northwards with no destination in sight thereby nullifying any short term gains. After all oil prices are determined by supply and demand and the trend is that demand will continue to outstrip supply in the foreseeable future.
During year 2005, the President of the Republic was quoted as saying that “within five years hydropower in Guyana will flow from one of the five sites under consideration.” Three years later and the Chairman of GPL, as reported, is still vague about a hydropower plant being constructed at Amaila Falls. Guyanese are anxiously awaiting announcements for the construction and procurement for components bids and since no statement has been made as to how the project will be financed and with the world’s financial markets in a turmoil it is unlikely that investors will be attracted to finance hydropower generation in a developing country such as Guyana with an uncertain political future.
GPL should be exploring other means of generating reasonably priced electricity. Wind turbines have been gaining popularity vis-à-vis diesel for generating electricity in the United States, Germany, Denmark, Holland and several other countries. Wind turbines do not have a long lead time for delivery and they could be installed in a short period of time. Also, they do not need complex technical know how to operate and maintain them. There is also solar power technology to provide electricity. I believe, however, that their cost and technical requirements will probably make their installation and maintenance too costly and complex for a developing country such as Guyana where the relevant skills necessary to manage, operate and maintain such an installation efficiently and effectively will be lacking.
Yours faithfully,
Charles Sohan
