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Ferguson Questions GPL’s Billions as Blackouts Persist

Admin by Admin
May 3, 2026
in News
Former MP and Minister Annette Ferguson

Former MP and Minister Annette Ferguson

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Former Public Infrastructure Minister and former APNU+AFC parliamentarian Annette Ferguson has mounted a sharp critique of the state of Guyana Power and Light (GPL), arguing that the utility’s continued failures—despite billions in taxpayer support—reflect deeper governance and leadership deficiencies as Guyana prepares to mark its 60th Independence Anniversary on May 26.

In a letter published by Village Voice News, Ferguson said as Guyana prepares to commemorate its 60th Independence Anniversary on May 26, the milestone should not only be a celebration of nationhood but also an honest assessment of the institutions responsible for driving development and improving citizens’ quality of life.

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At the center of that assessment, she said, must be GPL.

“Chief among these is the Guyana Power and Light Inc. (GPL), an entity that, despite decades of reform, restructuring, and substantial fiscal support, continues to fall short of public expectations,” Ferguson wrote.

Her criticism comes against the backdrop of growing public frustration over recurring blackouts, power instability, and high electricity costs, even as Guyana’s economy has expanded rapidly on the back of oil revenues.

Since oil production began in 2019, Guyana has emerged as one of the fastest-growing economies globally. That economic transformation, Ferguson argued, should have translated into stronger essential services.

Instead, she said, electricity remains one of the country’s weakest links.

“This issue becomes even more pronounced when placed in the context of Guyana’s emerging oil economy. With significantly enhanced fiscal capacity, citizens reasonably expect commensurate improvements in essential services such as electricity. Unfortunately, this expectation remains largely unmet.”

Her argument is underscored by the scale of government spending.

Over the last two budget cycles alone, GPL has received at least GY$43 billion in direct fuel subsidies.

In Budget 2025, the utility was allocated GY$18 billion after government determined its tariff structure could not finance the 2.46 million barrels of fuel needed to meet electricity demand. That subsidy increased to GY$25 billion in Budget 2026, as GPL remained dependent on imported heavy fuel oil for approximately 93 per cent of its power generation.

Those figures are separate from billions allocated for transmission upgrades, system expansion, grid modernisation, and the government’s flagship Gas-to-Energy Project.

For Ferguson, the numbers raise a fundamental question: where are the results?

“These allocations were intended to stabilise the company, improve infrastructure, and reduce system losses. Yet, the persistence of blackouts and service disruptions suggests a troubling disconnect between investment and outcomes.”

GPL, formerly known as the Guyana Electricity Corporation (GEC), has long been plagued by generation shortfalls, outdated infrastructure, and technical losses. Successive administrations have attempted reform, but Ferguson argued that the company remains trapped in a cycle of fiscal dependence and operational weakness.

She pointed to the period before the coalition government took office in 2015, recalling promises of transformational hydroelectric and solar projects under the governing People’s Progressive Party.

“Prior to May 2015, Guyanese were presented with ambitious visions of transformational energy projects, including hydroelectric and solar initiatives. These proposals generated widespread public optimism. However, many of these projects either failed to materialize or resulted in questionable expenditures with limited tangible benefits.”

In contrast, Ferguson said the A Partnership for National Unity and Alliance for Change (APNU+AFC) government stabilised GPL between 2015 and 2020—without oil revenues.

“During the Coalition Government’s tenure (2015–2020), notable progress was made in stabilizing GPL. Importantly, this was achieved without the benefit of oil revenues.”

She attributed that to professional management and politically independent leadership.

“A key factor in this progress was the appointment of a professional, competent, and politically independent Chief Executive Officer. Under that leadership model, there was measurable improvement in electricity reliability and operational efficiency.”

Ferguson’s criticism also extends to the government’s highly publicised Gas-to-Energy project, which has been promoted as the long-term answer to Guyana’s electricity problems.

The project is intended to bring natural gas from offshore oil fields to an onshore power plant, reducing electricity costs and increasing reliability.

But Ferguson warned that the project remains mired in questions.

“While such projects hold potential, concerns have been raised regarding transparency, cost escalation, and governance. Moreover, the anticipated improvements in electricity supply have not yet been realised.”

Her concerns were sharpened by the nationwide blackout on April 26, 2026, which resulted in a total collapse of the national grid.

GPL initially attributed the outage to a transmission fault, but Ferguson said the explanation lacked sufficient detail.

“The lack of detailed, timely, and transparent communication from GPL raises further questions about system resilience, contingency planning, and crisis management.”

She also pointed to operational coordination failures in the public sector, referencing reports surrounding the arrest of a Chinese engineer attached to China Railway First Group (CRFG), who was reportedly involved in damaging property while conducting works along Dennis Street, Sophia.

Ferguson said the incident raises troubling questions about whether public agencies are properly coordinating infrastructure projects.

“Are there coordinated work schedules between the Ministry and GPL? Are utility networks being properly mapped and protected before excavation and construction works commence? What mechanisms are in place to prevent damage to critical infrastructure and disruption to communities?”

“These are not trivial matters,” she said. “They speak directly to governance, planning, and accountability within the public sector.”

At the core of Ferguson’s critique is GPL’s governance structure.

She said there is a growing perception that the utility has reverted to old habits of political interference.

“There is a growing perception that the organisation has regressed to a pre-2015 state, characterized by political influence in executive appointments and a lack of technical expertise at the highest levels.”

To fix GPL, Ferguson outlined five key reforms: merit-based leadership appointments, stronger accountability systems, strategic spending, integrated infrastructure planning, and long-term energy planning that combines renewable and conventional energy sources.

The stakes, she argues, are too high for failure.

Reliable electricity affects everything—from household welfare and healthcare delivery to manufacturing, business confidence, and foreign investment.

And for a country positioning itself as an oil-driven economic leader, Ferguson said institutional competence must now match financial capacity.

“At 60 years of Independence, Guyana stands at a pivotal moment in its history. The country’s economic transformation, driven by oil revenues, must be matched by institutional competence and effective service delivery. GPL, as a cornerstone of national infrastructure, cannot continue to underperform despite substantial public investment.”

Her conclusion was blunt and urgent:

“The time has come for decisive action, rooted in good governance, professionalism, and accountability, to ensure that GPL finally gets it right.”

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