Commercial losses reduction a priority for power company Development plan to be finalised Stabroek News July 19, 2000 The Guyana Power and Light Inc from its first day of operations has vigorously looked to reduce the estimated 21% of commercial losses caused by consumer theft. According to Schedule 3 of the Licensing Agreement signed by the investors and the government in October 1999, the commercial losses were estimated at 21% of gross generation. The licensing agreement is a blueprint for the company's two-year development plan which is to be finalised shortly. "Available information suggests that the losses are widely spread throughout the system rather than concentrated in a few customers. As such a multi-year programme will be required to inspect installations and eliminate the problems and to negotiate with customers arrangements to pay outstanding amounts due. "Effective revenue collection is a cornerstone on which a viable electricity utility can be built... significant improvements on historical performance are required... Meter reading, billing and collection including disconnection for non-payment activities need to be improved at the earliest opportunity." The agreement says that in the first eight months "the company will commence inspections of all major customers installations with a view to formally verifying that metering installations are correct.... Develop a three- to five-year programme to inspect all metering installations." The average tariffs per kilowatt hour (kwh) will rise from 26.67 kwh this year to 31.56 kwh in 2001 reaching a peak in 2002 of 33.29 kwh before retreating to 33.05 kwh in 2003. The agreement states: "Generation capacity while broadly in line with demand at present can be compromised by maintenance and fault outages on either the transmission or generation. Load growth will require the addition of new capacity. The exact timing of these additions depends on actual load growth and progress in reducing losses." According to a table in the agreement new additions to the generation capacity of 82.7 megawatts (mw) were expected to occur at the rate of 5.5 mw this year; 10 mw next year; 2004 (10 mw) and 2006 (10 mw). By 2006 the peak capacity of 119.5 mw will be reached. In 2001, the agreement plans refurbishment of the Crossley Pielstick #4 engine and the Nigata #5 at Garden of Eden and the Canefield Mirlees Blackstone engine. The addition of 10 mw in 2001 will be at Garden of Eden, in part to help cater for the 50 hertz (hz) to 60 hz conversion. The Wartsila units will also be switched to 60 hz operation. "Problems on the existing transmission and distribution systems result in significant interruptions to customers. A significant part of the system is supplied on ...50 hz." In the first eight months GPL plans to "identify the most appropriate means of dealing with the conversion of 50 hz areas to 60 hz and transmission system strengthening." In 2000 this will involve the connection of Sophia with Onverwagt at 69 kilovolts (kv) to be completed next year. In 2001 GPL plans to install a 69 kv substation at Eccles and install new 13.8 kv switchgear at Kingston. GPL will concentrate on the production of audited accounts. The agreement states that this had not been done for a number of years. Follow the goings-on in Guyana in Guyana Today