GPL announces tariff reduction
This was made possible after intensive review by the new Board of Directors in consultation with its Executive Management team and the reduction in world market prices for fuel over the past year.
This reduction will be applied as a 5% reduction on the basic rate of both fixed charge and energy charge, and a further 15% fuel rebate on the energy charge. Given that the Company had previously applied an interim 10% fuel rebate on the energy charge in March 2015, the overall effect would see an additional 10% reduction on electricity bills.
The power company stated it wanted to reduce tariffs even further, but is constrained by its current level of overheads, technical and commercial losses, which in 2015 amounted to 29.2% of dispatched power.
The Company is actively engaged in addressing these losses and has approved a capital programme of $9.5B. This programme is intended to replace old generating assets, construct and upgrade substations, expand and upgrade the transmission and distribution network, expand smart metering, amongst others.