While the Guyana Power and Light (GPL) missed several of its key targets in 2014, it was able to record other accomplishments in relation to the number of blackouts and the Public Utilities Commission (PUC) will be reviewing the company’s performance and deciding whether its explanations are satisfactory.
Pursuant to the amendment of the licence granted to GPL, under Sections 4 and 42 (3) (c) of the Electricity Sector Reform Act 1999 and issued effective October 4, 2010, GPL is required to submit annually, beginning from 2011, its performance in the Operating Standards and Performance Targets (OS&PT).
Yesterday, a discussion was convened by the PUC to ascertain whether GPL’s performance and the explanation for its performance and reasons why certain targets were not met, were acceptable.
GPL’s acting Chief Executive Officer Rensford Homer explained most of the standards at the hearing at Cara Lodge and answered several questions posted by scrutineers.
With regard to customer interruptions, while the targets for System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI) were set at 85 and 95 respectively, their achievement in 2015 was 99.77 and 96.5 respectively compared to 136.36 and 140.16 in 2014. While the company did not meet its intended target for the year, the significant drop was credited to the linkage between the Demerara and Berbice systems.
A member of the public inquired about the causes of the interruptions and whether the lack of fuel was one of the main causes. However, it was explained that at no time was the lack of fuel the reason and the majority of the outages were because of the vegetation on the lines and the random ‘transmission trip’ that the lines experience.
In relation to voltage regulation, it was stated that GPL was expected to maintain a stable voltage of +/- 5% of the nominal voltage, and +/- 10% following a system disturbance and require a period of no more than 30 days for restoring customers’ voltage complaints due to network configuration, vegetation, upgrades of lines, additional transformers and others.
It was stated that while it is difficult to monitor the voltage delivered to each customer, the standard is based on the number of voltage complaints received and the time taken to resolve them. While the target for resolving the problems was set for 30 days, GPL stated that most of the issues were resolved in less than 30 days.
In relation to Meter Reading, the target was set at 97% for maximum demand bills and 90% for non-maximum demand bills. However, as regards maximum demand bills, the company was able to achieve 93%, the same as 2014, and 89% for the non-maximum demand bills.
Concerns were raised about customers not being able to read meters that were placed high up on the utility poles and Homer related that such measures were taken to prevent people from tampering with the meters.
On the issuing of bills, the target set was 7 days for issuing maximum demand bills and 10 days for non-maximum demand bill. GPL was able to do better than expected for 6 days with the maximum demand, but fell back with the non-maximum demand with 11 days. While the figures stayed the same for the non-maximum demand since 2014, it had increased from 9 days in 2014 to 11 in 2015.
The increase in days for the non-maximum bills was said to have happened because of the machine breaking down in the first two quarters of the year.
In examining Accounts Receivable, Homer said that the purpose of that standard was to ensure that GPL collected its billings in a timely manner. The receivable accounts target was set at 40 days. GPL registered 48 days in 2015 as compared to the 45 days achieved last year. For the payable accounts a target of 26 days was set but GPL achieved this in 32 days, a big drop from 2014’s 55 days.
In relation to analysis and projections, it was stated that the level of losses at December 2015 was projected at 30.9% of dispatched power, with technical losses estimated at 14.4% and non-technical at 16.5%. GPL was able to achieve 13.3% in technical losses, 16.5% in non-technical losses. While it was the same in 2014 for the technical losses, it increased from 15.4% for the non-technical losses.
According to law, the commission must now review GPL’s performance in comparison with the OS&PT, to determine whether the power company has failed to meet such standards or performance targets in any material respect.
The commission has 30 days, starting April 1, to make a determination based on GPL’s explanations, whether failure to meet the standards was due to circumstances beyond the control of the company or was as a result of policies not consistent with accepted best practices. If it is the latter, the commission may, under the powers granted it by the licence, levy a fine on the company.
