Business News of Wednesday, 20 February 2013

Source: The Chronicle

Generators in high demand

The sale of generators as alternative sources of electricity power supply has increased in recent times in the Ashanti Regional capital, Kumasi, a survey by The Chronicle has revealed.

The product has been in high demand over the last few months, as store owners and businessmen adopt various means of ensuring sustainable supply of electricity to facilitate their businesses.

With uncertainties surrounding the end to the recent poor supply of electricity, dealers in generators have found an opportune time to cash in on the increasing need for an alternate source of power supply.

At the main Central Business District (CBD), Adum, for instance, a number of store owners who deal in various kinds of products, ranging from mobile phones to household provisions, have acquired these generators to serve as back-ups in an event of power cuts.

The erratic power supply in recent times is said to be having a serious toll on businesses in the country, as many companies continue to record low sales due to the absence of electricity for production.

The hardest hit in Kumasi are the printing presses and heavy industrial firms, since their heavy duty machines require high power voltage to be able to function efficiently.

As a result of the high demand for generators, prices of the product have increased steadily over the past few months, as dealers continue to take advantage of the desperate need for electricity supply.

For instance, a 250-300 volt of generator, which used to cost around GH¢150.00 a few months ago, now costs over GH¢300.00, whilst the 500-900 volts now sells at over GH¢1,000.00.

Some businessmen could not hide their frustrations during an interaction with them, alleging that the frequent power cuts was a ploy by some leading executives of the Electricity Company of Ghana and the Volta River Authority (VRA) to facilitate the business of companies dealing in the manufacturing and sale of generators.