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Power crisis looms in Ghana
By Masahudu Ankiilu Kunateh, Ghanadot
Accra, Jan 14, Ghanadot - Ghana faces an imminent energy
crisis this year if the government does not make funds
available to meet the subsidized cost of energy production
by the Volta River Authority (VRA), an official of the
company has said.
The official, who pleaded anonymity, disclosed that VRA was
in dire financial straits as a result of selling power to
the Electricity Company of Ghana (ECG) at a subsidized rate
for the public to enjoy low tariffs.
The source said currently, VRA was producing hydro power at
four pesewas per kilowatt hour while the power plants
produce at 28 pesewas.
In spite of the cost, VRA was compelled to sell power to the
ECG at six pesewas with the difference piling up as debt for
the company. According to the source, the government in the
past provided money to cover for the difference, lamenting
that “this year’s budget to the energy sector made no
mention of such money.”
The official said the situation had petitioned the Public
Utility Regulatory Commission (PURC) to take a second look
at the tariff but both government and PURC officials always
dragged their feet at the mention of tariffs for fear of
public outcry. The source said VRA would have to continue to
depend on crude oil, which was a major drain on its
financial resources.
He said power supply was affected whenever the VRA was found
wanting in raising funds for the supply of crude oil which
was usually done ahead of the needed time. Explaining why
some communities would be deprived of power for a number of
days this week, the official said the late arrival of
200,000 barrels of crude at the Tema terminal led to a
shortfall of 30 megawatts from the usual 110 megawatts the
Tema thermal plant has been producing.
“In order not to over load the system, we decided to reduce
electricity by 30 megawatts throughout the country by taking
out power supply in pockets of communities from 6pp.m to
9p.m until the situation is restored to normalcy,” he added.
The source said the ship has now berthed with the oil cargo
and would take two days to be discharged and treated before
being fed into the machines for production of power. The
source said the 200,000 barrels of crude would last for
about a month and the country risked experiencing frequent
power cuts given the rate of VRA’s operational loss.
Reacting to VRA’s concerns Mr Akwasi Sarpong, head of Public
Relations at the Ministry of Energy revealed that the
Ministry had liaised with the Ministry of Finance to salvage
the situation. “As at today, through the efforts of the
Minister of Energy, the Ministry of Finance has directed
that some funds should be released to VRA, to meet the
subsidized cost of its energy production,” he said but could
not readily say how much would be released.
Mr. Sarpong recalled that in 2007 PURC reviewed the
electricity tariffs and the government decided to absorb the
deference. This was however not paid to the VRA.
Ghanadot
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