The Guyana Power and Light (GPL) once again missed several key targets in 2015 and in its review the Public Utilities Commission (PUC) has rapped the company for continuing high system losses and called for more challenging benchmarks to be set in this area.
GPL is required to submit annually to the PUC its performance in the Operating Standards and Performance Targets (OSPT).
The OSPT, which are included in GPL’s approved Development and Expansion Pro-gramme, according to the PUC’s review, constitute the standard and quality service that GPL is required to provide in accordance with section 25(2) of the PUC Act.
GPL was measured according to eight operating standards and performance targets.
These include system losses, customer interruptions, voltage regulation, meter reading, issuing of bills, accounts payable, accounts readable, and average availability.
Of the eight standards the company was able to meet only two; that of the average availability of power and system losses. Despite this failure the PUC has noted that it “found the company’s efforts creditable, but for system losses.”
According to the utilities commission, the standard for systems losses set by the company was a “soft target”
The standard sets system losses at 30.9% of dispatched power for 2015, within which period GPL stated that the system losses were 29.2% of dispatched power.
The commission noted that this represents an increase in losses from the 28.65% of losses reported in 2014; an increase which translates to millions of dollars.
“Although the Standard was achieved the Commission is of the opinion that GPL was set a soft target that was easily attained without the company extending itself. This is not the intent of the Standard.
The standards are intended to challenge the management to perform at optimal levels consistent with the resources available to the organization at that point in time. It is our opinion that a more challenging target needs be set,” the PUC said.
The commission further noted that a 2011 Inter-American Development Bank programme to install tamper-proof meters remains at an embryonic stage five years later.
The project saw the installation of 1,867 tamper-proof Advance Metering Infrastructure (AMI) meters in certain designated areas so as to record the usage for these areas and compare the consumption patterns recorded by the meters to the previous periods where consumption were recorded by the current electro-mechanical and prepaid meters. If the comparisons suggested significant tampering, the company was expected to consider a change to AMI meters.
“The findings did indicate that the change to AMI meters would be in the interest of the company. The slow progress in addressing system losses borders on inertia that is of grave concern to the Commission,” the PUC states.
Also noted is the company’s estimation that its current loss reduction programme when completed in 2018-2019 will reduce system losses to 23.8%. This did not impress the PUC, which noted that even if this is achieved the company would continue to hold the dubious distinction of having the highest system losses among the members of the Organisation of Caribbean Utility Regulators. Further the loss would still be at unacceptable levels as it would translate to billions of dollars annually.
“System losses and the cost that attends it are significant.
It burdens the national economy and is an impairment on consumer’s quality of life,” the commission stressed even as it decided that it would not be appropriate “at this point in time, to make any award of monetary penalty on the Corporation.”
“Having regard to all we have heard and noted and taking into consideration the explanations offered by the officials of GPL ….their failure to meet certain targets as adumbrated was mitigated by the fact that they were not excessive and the impact on consumers was not inordinately burdensome,” it said even as it urged the utility company to “pull up the traditional socks and get on with the business of fulfilling their mandate in providing a safe service at reasonable prices.”
