Minister of Public Utilities and Aviation, Deodat Indar, has said that electricity theft remains a major challenge for Guyana Power and Light Inc. (GPL), accounting for nearly 12 per cent of the company’s losses. However, he noted that significant progress has already been made in reducing overall losses through infrastructure upgrades and stricter monitoring systems.
Speaking at the Guyana Dialogue programme, Minister Indar explained that GPL’s combined technical and commercial losses were once among the highest in the region, reaching nearly 50 per cent in previous years. Today, those losses have been reduced to around 24-25 per cent through several targeted initiatives implemented across the country.
According to the minister, GPL has focused heavily on communities with widespread illegal electricity connections. Through inspections, monitoring, and upgrades to the distribution network, the company has steadily reduced losses.
Indar clarified that GPL’s losses fall into two categories: technical and commercial. Technical losses occur naturally as electricity travels long distances along transmission lines, while commercial losses mainly arise from illegal connections and electricity theft.
He stated that approximately 13 per cent of losses are linked to technical issues in the transmission system. Electricity transmitted through lower-voltage networks often loses power over long distances, reducing efficiency and wasting energy.
To address this issue, the government is modernising Guyana’s electricity infrastructure with support from major international companies, including PowerChina and Kalpataru Projects International. The project involves upgrading transmission lines from lower-voltage systems to a modern 230,000-volt network, enabling more efficient electricity transmission across the country.
The minister explained that the upgraded grid will enable bulk electricity transmission along the coastline and to connected regions, significantly reducing line losses and improving reliability.
Despite the infrastructural improvements, Indar stressed that enforcement remains critical to tackling electricity theft. He said that GPL’s dedicated loss-reduction department regularly inspects to identify illegal connections and take corrective action against offenders.
At the same time, the government believes that reducing electricity costs will play a major role in discouraging theft. Minister Indar pointed to the ongoing Gas-to-Energy project, which is expected to cut electricity prices by 50 per cent once operational.
The project, currently about 72 per cent complete, is expected to begin delivering benefits by the end of the year. Present electricity rates in Guyana range from 23 to 24 US cents per kilowatt-hour, and the government believes that halving those costs will remove much of the financial incentive for illegal connections.
According to the minister, when electricity becomes more affordable, consumers will have less incentive to bypass meters or seek illegal power connections for homes and businesses.
The government’s broader strategy, Minister Indar said, combines stronger enforcement, advanced transmission infrastructure and lower electricity tariffs to create a more reliable and sustainable energy system and to reduce power theft across Guyana.