Guyanese can expect a decrease in the overall tariff that they have to pay for electricity while enjoying an improved level of service from the Guyana Power and Light (GPL) Inc once the Amaila Falls Hydro Power Project comes on stream in 2017.
This is according the company’s chairman Winston Brassington who said that the project financing is in its final stages of approval. Brassington also serves as the technical team leader on the project, which promises to supply Guyanese with an improved supply of electricity with the use of clean energy generated from a renewable resource.
Brassington said the project would result in GPL saving significantly as he pointed out that currently it costs the company between 18 and 20 U.S. cents per kilowatt hour to generate electricity using heavy fuel oil, and 30 U.S. cents with the use of diesel.
He explained that with the advent of hydropower, this cost would be reduced significantly which would see consumers benefiting from lower electricity bills while confirming that GPL would no longer need operating subsidies from the central government.
Brassington explained further that currently the real cost inclusive of generation, losses, selling and distribution stood at approximately 40 U.S. cents per kWh. However, tariffs paid by customers are only 30 U.S. cents per kWh.
“So our selling price today is subsidised. Last year, GPL lost about G$7 billion; we received G$6 billion in a subsidy from the government. This project will allow us to remove the subsidy and additionally will allow us to lower our tariffs to consumers,