Enery Minister Oppose Higer Tarrifs

Energy Minister, Albert Kan-Dapaah MP, says the Ghanaian Government will not allow utilities to pass on their inefficiencies in the form of higher tariffs to consumers.

To him, while it is imperative for utility companies to provide efficient services at economic rates, the government also has a social obligation to reduce the financial burden that a reckless imposition of rates can cause.

Speaking at the launching of a national energy efficiency awareness campaign launched by the Vice-President, the Minister pointed out that, “under no circumstances shall we permit the passing on of the utilities to consumers.”

Kan-Dapaah nicknamed “affordable” by his colleagues in Parliament, explained that it was for this reason that “we opposed the demand for over 300 per cent increases last year. And that is why I find it preposterous the ridiculous demand for about 250-300 per cent being bandied around by the utilities today.”

He however made it clear that economic rates for utility services are inevitable. “Without economic rates, we will continue to live with the present poor and unacceptable standard of service,” the minister said.

Mr. Kan-Dapaah said although it is essential that the utilities cover all costs, failing which they will be forced to ‘cut corners’ and in the process compromise efficiency, the payment of economic rates must not be inflated by wastes and inefficiencies,” he added.

He describes the current electricity supply in the country as “simply not good enough for both residential and industrial customers. Production has been curtailed from the hydro sources from about 1,100 Mega Watts to 600 MW.

Kan-Dapaah attributed the situation to the mismanagement of the Akosombo and Kpong dams over the years, antiquated infrastructure, disregard for good engineering practices, years of neglect and lack of maintenance and waste in production and transmission.

He regretted that even with the complementation of 600MW from the Aboadze Thermal Plant and Cote d’Ivoire, Ghana is not able to enjoy sustained and continuous power supply.

One of the units of the Takoradi plant has never worked since its installation, thus losing 165MW of the plant’s capacity of 550MW. The distribution of system has virtually broken down such that even if the Volta River Authority (VRA) supplied ECG with all the power in the world, ECG would be unable to distribute the power.

Vice-President, Alhaji Aliu Mahama described as disturbing the fact that about 30 per cent of electrical power produced in the country is wasted through inefficient practices.