GPL to receive $18 Billion to aid in power generation

The Guyana and Light (GPL) will receive $18 Billion to aid in power generation this year.

Prime Minister Mark Phillips on Monday told the Parliamentary Committee of Supply that the money is needed to subsidize the cost of electricity.

It was explained that at the current tariffs, the state-owned power company would only be able to procure 1.6 billion barrels of fuel – some 800,000 barrels less than required, hence the added financial support is required.

“At the current fuel price of approximately US$104 a barrel, GPL can procure 1,657,371 barrels of the fuel at the current customer tariff without any increase in customer rate. However, GPL needs 2,462,380 barrels of fuel to meet its generation requirement. GPL needs funding to procure, therefore, an additional 805,009 barrels of fuel at approximately US$104 a barrel,” he told the Committee.

Prime Minister Phillips was at the time responding to a question from Opposition Member of Parliament, David Patterson.

The Prime Minister reminded the Committee that notwithstanding the price of fuel, GPL continues to supply electricity with no added cost to customers.

“Notwithstanding the shocks that would have seen fuel prices going through the roof on many occasions, and many other issues suffered by GPL, our people today, January 2025 is paying the same rate that they were paying for electricity, pre-covid in Guyana. The point is, you have a government that did not increase electricity rate in five years,” Prime Minister Phillips boasted.

However, when asked about the quantity of fuel required for the two power ships, the Prime Minister committed to provide the information to the Committee.

Prime Minister Phillips was also grilled on commercial losses, and he told the Committee of Supply that GPL recorded losses of 24.5%

But MP Patterson, who served as Minister of Public Infrastructure under the APNU+AFC Administration 2015-2020, reminded the Committee that under the coalition, GPL saved $450M annually due to a reduction in losses.