The utility companies, who are currently meeting the Public Utility Regulatory Commission (PURC) in a Joint Consultative forum in Accra, want tariffs increased by about 200 percent.

Speaking to Citi Business News, the Chairman of the Technical Committee of the PURC, Ishmael Egyekumhene, said the situation needs careful assessment as government has already promised a reduction in electricity tariff.

[contextly_sidebar id=”Zs97Be90KMl0nEm6B8CXTSWHqHl8V1pW”]“All of them are asking for significant increases in the tariffs. That even makes our work more difficult because already the Executive [President] has actually gone ahead to announce some tariff reduction. I’m sure you just listened to the NEDCo presentation; the figure they are asking for translates to about 200% increases in what was approved for them in 2015. So all of them are pointing upwards, they are asking for more money, but it’s our responsibility to start interrogating all the cost centres because at the end of the day, they have what they call, revenue requirements which goes into how much money they need to be able to run the systems.”

Mr. Egyekumhene said cost is a major factor in considering the total revenue requirements.

“We are looking critically at the cost right from generation to transmission and distribution. If we are only to base the analysis on exchange rate and inflation, there is every justification for the tariffs to go up,” he added.

Gov’t reduces electricity tariff by 14% for non-residential users

President Nana Addo Dankwa Akufo-Addo had on January 15, 2018, announced an average of 14% reduction in electricity tariffs for non-residential users in the country with effect from January 2018.

“From January this year, the non-residential tariff rate, which is the rate which includes all of you here, is being reduced by an average of 14%. For barbers, it is being reduced by 18%; for hairdressers and beauticians, 15.7%, and for tailors, 9.8%,” he added.

Government had earlier recommended to the Public Utilities Regulatory Commission (PURC) to reduce electricity tariffs in the country.

It promised to reduce electricity tariffs by between 13 and 21 percent for residential consumers and industry respectively.

The PURC’s meeting with stakeholders in the sector was to among other things negotiate and determine a reduction in tariffs for businesses.

Gov’t can’t recommend reduction in power tariffs -Wereko-Brobby

Former Chief Executive Officer (CEO) of the Volta River Authority (VRA), Dr. Charles Wereko-Brobby, was one of the people who accused government of trying to usurp the mandate of the Public Utilities Regulatory Commission (PURC), by announcing a reduction in electricity tariffs.

According to him, government could make proposals to the regulatory body about a possible reduction in the tariffs, citing possible changes in the cost of production.

He added however that, the final say on any adjustment of the tariffs should come from the PURC devoid of any pressure from the government.

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By: Godwin A. Allotey & Pius Eduku Amihere /citifmonline.com/Ghana
Follow @AlloteyGodwin

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The President maintains that allowing private participation should provide the needed capital and eventually reduce the cost of power.

Already, there are plans to sell off the thermal assets of the VRA to limit the Authority’s control and management of thermal plants.

Presenting the State of the Nation Address to Parliament on Thursday, February 8, 2018, Mr. Akufo Addo said,

“There is relief in some areas and I refer specifically to the spectacular improvement in our power supply program. A lot of hard work has gone into easing the impairable debt situation that threatens to paralise the energy industry. We still have problems with the cost of power and we are working to put Ghana at a competitive advantage. We intend to find private sector operatives to buy into the state-owned thermal plants and inject the capital needed to bring the power tariffs down to both domestic and commercial consumers” he said.

Meanwhile President Akufo Addo says he is optimistic renewable energy remains the ultimate option in solving the country’s power issues.

“The most reliable and ultimately cheapest answer to our power lies with renewable energy sources. We shall promote and enthusiastically encourage investment and use of renewable energy”.

The energy sector has faced major power setbacks which includes frequent electricity hikes as well as constant power outages.

The Finance Minister, Ken Ofori-Atta, earlier proposed an average reduction of 13 percent in electricity tariffs for residential consumers of electricity.

Consumers in the non-residential category are also to see a 13 percent drop in tariffs.

But the Public Utility Workers Union (PUWU) urged government to be cautious in the proposed reduction in electricity tariffs.

PUWU also sought clarity on how power producing companies will cater for the cost implication of the reduction.

But President Akuffo Addo believes renewable energy remains key in transforming the energy sector.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

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He explains that his ministry will work to generate funds to address critical issues confronting residents in such communities.

Mr. Agyarko believes addressing the funding needs is critical to sustaining the livelihoods of such affected persons.

“I wish to lay emphasis on the sordid plight of the resettlement townships because for about 30 years, these communities have suffered from environmental degradation, poor drainage and road networks and difficulties arising from low income levels. It is reported that initially, these townships did not even have electricity supply, the very commodity for which the people lost their entire livelihood,” he stressed.

Mr. Agyarko added, “The Trust Fund, has achieved a modest success, however, it has faced numerous challenges over the years, primarily, because the grant from the Volta River Authority (VRA) has not been regulator in the past few years. In fact, I am informed that a part of the grant expected in 2015 and the grants expected in 2016 and 2017 are still outstanding.”

The Volta Resettlement Fund, established over twenty years ago (1996), is mandated to seek to the welfare needs of the 52 communities affected by the Volta Lake project.

The creation of the Volta Lake among others, led to the flooding of about 730 villages with a total population of about 80,000 people.

Speaking on behalf of the Board of Directors for the Fund, the Chairperson, His Worship Rtd. Emmanuel Nana Antwi-Barima also expressed his outfit’s resolve to improve the livelihoods of all affected persons.

“If the state has so soon forgotten that the people whose land has been swallowed or cannibalized by the water before we are getting fish, water and electricity are being relegated to the background, then this is an awakening call. First to the Minister and his Deputies, then we the Board members,” he noted.

He added, “But the only problem is that when we come, there wouldn’t be the usual syndrome, no money antics…But automatically, money will be used for certain things we want to give to the people i.e. education, water, electricity, among others.”

The Board is Chaired by His Worship Rtd. Emmanuel Nana Antwi-Barima with members including; Hon. Matthew Nyindam, Ms Beatrice Owusu, Hon. Salifu Braimah.

Others are; Hon. Joycelyn Tetteh, Hon. Helen Adzoa Ntoso and Mr. Winfred N. Amanu.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Ministry prioritizes communities displaced by Volta Lake Project appeared first on Citi 97.3 FM - Relevant Radio. Always.

Almost the entire Tamale Metropolis was plunged into total darkness on Monday, November 20,2017,  following an inferno that gutted a portion of the substation at Choggu Hilltop.

The Management of VRA/NEDco on Friday, November 24, 2017, fully restored power to the Tamale Metropolis.

The VRA/NEDco Manager in charge of Corporate Communications, Maxwell Kotoka, in a statement copied citifmonline.com, stated that, “It would be recalled that in the evening of Monday, November 20, 2017, fire razed critical equipment through which nearly all domestic and commercial consumers, were being served electric power in the metropolis, thereby plunging nearly the entire township into darkness.”

“Since then, the Management and Staff of NEDCo, working with tremendous support and cooperation from GRIDCo, the Hon Minister of Energy, the Hon. Northern Regional Minister, The Hon. Minister for Roads and Highways, The Ghana Police Service, The Department of Roads and Highways, Various local contractors, the Media and of course, the Chiefs and good people of Tamale have succeeded in restoring power to all the affected consumers.”

“It must however be re-iterated that, all the restorations so far are temporary ones, whilst we take steps to fully investigate the cause of the fire with the view to avoiding a future recurrence, and to replace the burnt equipment. This will take some reasonable time so we would have to make do with the temporary arrangements for a while.”

Maxwell Kotoka reaffirmed management’s commitment to permanently fix the problem as Christmas approaches.

“We assure the public that as usual, we shall continue to do our best in rising to the challenges that may come up. In this regard, we still urge the public to continue to be patient, tolerant and cooperative.”

“Meanwhile, the fenced space at the frontage of the GRIDCo Sub-station, off the Choggu-Water Works Road, has been converted into the distribution hub centre for Tamale, so it has been designated a security zone where entry and/or loitering is strictly prohibited. The General Public is accordingly advised not to trespass for their own interest and safety.”

He appreciated the tremendous efforts of individuals and institutions that supported VRA/NEDco during the difficult times saying, “We wish to deeply acknowledge and tremendously thank all who have supported us in diverse ways for their respective roles without which the stop-gap works could not have been done in such a record time. We hope to be able to continue to count on you in these trying times and beyond.”

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By: Abdul Karm Naatogmah/citifmonline.com/Ghana

The post VRA/NEDco finally restores power in Tamale Metropolis        appeared first on Citi 97.3 FM - Relevant Radio. Always.

Ibrahim Alhassan Gawsu, was additionally ordered to refund the monies collected from the victims, and to pay compensation of GHȼ4,000.00 to the Northern Electrification Distribution Company (NEDCo), a subsidiary of the Volta River Authority (VRA).

[contextly_sidebar id=”KpVrUNXroVEADOHNz72s0KZ0nC9ljuTC”]He would in default serve 10 years in jail.

The court, presided over by Ms. Lydia Osei Marfo, gave the punishment after he pleaded guilty to defrauding by false pretence.

Police Chief Inspector Daniel Gbedzinu, said the convict had been contracted by the company two years ago to take electricity meter readings in houses in the Ejura Municipality for calculation of monthly bills.

Between 2015 and 2016, he convinced 10 property owners that he could help supply power to their property and succeeded in collecting from them cash totaling GHȼ4,165.84.

The convict, however failed to deliver on his word, and the matter was brought to the notice of the company.

When confronted by the Municipal NEDCo Officer, he confessed to taking the money, and he was subsequently handed over to the police.

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Source: GNA

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Speaking at a meeting with President Akufo-Addo at the Flagstaff House in Accra, Secretary-General of the TUC, Dr. Yaw Baah said his union is opposed to the sale of the thermal plants.

[contextly_sidebar id=”JVvPTapQcmLyiDR1bYbkzINfbUs3O0ox”]”These strategic assets are so crucial for our industrial development and for the achievement of your vision for Ghana… we do not support the privatization of such important national assets. We believe that the VRA is more capable of managing these plants efficiently and effectively,” Dr. Baah said.

The government advertised the sale of at least a majority stake in specified thermal plants owned by the VRA in August, as part of efforts to restructure the energy sector.

But this has been met with opposition from VRA staff who contend that such a move will not solve problems in the energy sector.

Protect ECG workers

Another point of contention in the energy sector that was touched on, was the process to give the Electricity Company Ghana (ECG) out on concession, as part of the Millennium Challenge Corporation (MCC) Power Compact II programme.

Over 1000 workers of ECG, led by the Public Utilities Workers Union (PUWU), have sued the government over moves to hand over the operations of the company to a concessionaire without plans of a redundancy package for them.

Dr. Baah appealed to the President to intervene so that no worker of ECG loses his job following the plan to privatize it.

“I urge you, Mr. President, to ensure that the union is properly engaged so that Ghana can benefit fully from the compact. I would like to assure you that we are open to dialogue,” he added.

Dr. Baah stressed that continual engagement between the government and unions was critical to ensuring minimal tensions.

“This year [2017] has been quite peaceful, but it may not be sustainable unless we work together as tripartite partners to keep the peace we have all been enjoying since the beginning of the year,” he stated.

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By: Sammi Wiafe/citifmonline.com/Ghana

The post Selling VRA thermal plants a bad idea – TUC appeared first on Citi 97.3 FM - Relevant Radio. Always.

This they said would help the public understand that given the push, VRA can manage its own thermal assets.

[contextly_sidebar id=”VeDjO8dY1MxrjDV8xxrSWY4smPEcBtQC”]“The government is saying VRA operation is a debt on Ghanaians but can we break down the debt so Ghanaians can appreciate where he is coming from. I think that will be a fair argument,” the General Secretary of the Western Operating Area of the VRA senior staff, Charles Owusu Sekyere said.

Government is in search of a transaction advisor to sell the Authority’s thermal assets in a bid to make it more profitable.

Mr. Owusu Sekyere, however believes the VRA can do better than any other independent power producer in the thermal sector.

“I think that per the PURC tariff that they have given us, VRA can operate and it will be cheaper than almost all the independent power producers in the country.”

The employees had earlier stated that the advert came as a surprise to all the staff of the VRA.

“We were not consulted. We were not engaged in any way so we have no input in what the government is trying to do,” Cephas Duse, the Chairman of the Senior Staff Association of VRA stated.

They also indicated that the sale of thermal plants defies mordern business logic and cannot address the challenges of the power producer.

The Chairman of the Senior Staff of VRA, Cephas Duse had said the current challenges faced by the state power producer is a result of bad deals with independent power producers, which were allowed by successive governments.

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post Provide details on VRA’s debt – Senior Staff to gov’t appeared first on Citi 97.3 FM - Relevant Radio. Always.

Addressing the media today [Tuesday], Chairman of the Senior Staff of VRA, Cephas Duse said the current challenges faced by the state power producer is as a result of bad deals with independent power producers, which has been allowed by successive governments.

[contextly_sidebar id=”DiXoqbfHldQGnOnX4I51tiEEw0qEXTm3″]”For example, we buy power from AMERI at 15 cents and we sell to ECG at 5 cents,” he noted, adding that this is done in the interest of the nation because the government says they cannot sell the power to Ghanaians at 15 cents.

“…As a result of its [Government’s] bad arrangement with AMERI for example, VRA has incurred an avoidable loss of $218 million within the first 18 months, from January 2016 to July 2017. On the average, VRA incurs a loss of $11.5 million and this arrangement is supposed to be with us for five years.”

VRA also reportedly owes the banks to the tune of GHc 4.4 billion.

Despite these challenges, Mr. Duse said the Authority was doing its best to live up to its mandate of providing the people of Ghana with affordable power.

“I urge those in the Ministry of Energy and Finance Ministry to stop micro-managing VRA and allow the governance structures to work… What VRA needs at this material moment is a board and the debts in the power sector cleared to make VRA’s books look good,” he said.

Stop the sale of thermal plants or face our anger – VRA Senior staff

These workers are joining the Senior Staff of the VRA and the VRA’s division of Public Services Workers Union (PSWU) of the Trades Union Congress (TUC), who have petitioned government, asking for the withdrawal of the public advertisement seeking to engage the services of a Transaction Adviser, to sell specified thermal plants of the company.

The workers in a resolution reached at the end of a meeting on August 25, 2017, forwarded their demands to the Ministers of Energy, Employment and Labour Relations, Finance and the National Security Minister.

They gave government 14-days to meet their demands or risk an industrial action.

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By: Anas Seidu/citifmonline.com/Ghana

The post Selling thermal plants won’t solve VRA’s problems – Staff appeared first on Citi 97.3 FM - Relevant Radio. Always.

The workers in a resolution reached at the end of a meeting on August 25, 2017, forwarded their demands to the Ministers of Energy, Employment and Labour Relations, Finance and the National Security Minister.

[contextly_sidebar id=”RDgyT473zkmxGYe3sEJoWOUNlf1b1TWd”]They warned that, they will “marshal all available legitimate forces to stall the process and save VRA for mother Ghana” if government goes ahead with its decision to sell off the plants.

According to them, the decision to sell off the thermal plants through an advertisement in the Daily Graphic on August 24, 2017, came to them as a surprise since they were not consulted.

“The advertisement has brought disappointment and agitation to the rank and file of VRA, and almost paralyzing VRA’s power operations. The non-engagement prior to this advertisement is a breach of the VRA ACT 1961 (Act 46) as amended, specifically 2, 3, 19 and 20. This is therefore a complete breach of trust and non-adherence to good corporate governance principles.”

The workers in their resolution said “we therefore resolve that: the advertisement be withdrawn. The decision to sell any VRA Thermal Assets be rescinded, VRA’s Thermal and non-power generating assets are not for sale.”

They added that, “Whatever informed the decision to sell was not based on any proper root cause analysis of VRA’s problems and that of the entire power sector. Mr. President, please intervene to stop the process of the sale of VRA assets to avoid potential industrial action. We are expecting your response in 14-days after the date of this resolution.”

The government has already advertised the sale of at least a majority stake in specified thermal plants, and it has argued that, the VRA was not doing a good enough job with the management of the thermal plants, and should focus on just hydro power generation.

But the senior staff of the company disagree with government’s reasons for the intended sale.

It rather wants government to among other things, “restructure the company, by ensuring that independent power producers such as AMERI, TICo/TAQA, Asogli and CENIT, procure their own fuel.They must also be made to sell their expensive power directly to the distribution companies and other customers rather than making VRA the off-taker. Government must stop compelling VRA to sell power to customers like VALCO at subsidized rate.”

The workers also want government to “inaugurate a governing board immediately for the VRA as prescribed in Section 3, (1) of the VRA ACT 1961 (ACT 46) as amended. There must be proper engagement in all decisions that impact on the sustainability of VRA” they added.

We’ll resist sale of VRA thermal plants – Mutawakilu

The National Democratic Congress (NDC) Minority in Parliament has already warned that it will vehemently resist attempts to sell some thermal plants of the Volta River Authority (VRA).

The Minority’s Spokesperson on Energy, Adams Mutawakilu, speaking on Eyewitness News recently stressed that, selling the VRA thermal plants should not be an option for government.

“The sale of VRA thermal plants shouldn’t be considered. It shouldn’t be an option. If that is their option, they should rethink because there will be resistance from well-meaning Ghanaians, from the NDC in respect to the sale of the thermal plants.”

“We will do everything including demonstrations. We will undertake stakeholder consultations to get stakeholders on board… whatever we will do to ensure that it becomes very difficult to sell off government assets, we will do it” he stated.

Consumers will suffer

The Minority has long maintained that, this move will compromise Ghana’s power security and the comfort of consumers.

“If you take the total energy generation, the government has control of 65 percent of the total power generation; 1,254 megawatts for thermal, and 1,580 megawatts for hydro,” Mr. Mutawakilu noted.

The Independent Power Producers are responsible for 1,505 megawatts, thus “the moment we sell off this plant, government will control only 36 percent and 64 percent will be controlled by the private sector. You know they are profit oriented, so apart from power security, it is going to lead to high tariffs,” the MP said.

This would be a slap in the face of the government’s promise to reduce electricity tariffs for Ghanaians, Mr. Mutawakilu added.

“With the steps they are taking, if you want to actually reduce tariffs, you don’t handover power generation to the private sector, and that is why we are against it. The ordinary consumer will suffer… there is no way we can sell our assets and the private sector takes control then we come out and say we want to reduce electricity tariffs.”
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By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana

The post Stop the sale of thermal plants or face our anger – VRA Senior staff appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking on Eyewitness News, he described private sector participation “as the most efficient way to go” in the handling of the thermal plants.

[contextly_sidebar id=”UZM5HMPuU15Bw4G3oOgPKziJTGUHYlD0″]The government, however, is set on the sale of the plants, as indicated by an advertisement the sale of at least a majority stake in specified thermal plants owned by the VRA.

The government had decided that the VRA was not doing a good enough job with the management of the thermal plants, but the recent move to sell that has upset some workers of the VRA.

Mr. Mutawakilu also insisted that, selling off state assets to solve problems is not always the best action to take.

He recounted the near sale of the now-GCB Bank in 2007/08 because it was in distress, but “NDC came into power and we thought we should not just sell it. Let’s let private sector participate.”

“… And today, we are using GCB Bank to salvage UT and Capital Bank. That tells you that it’s not just selling that is the most important solution. Letting the private sector participate, and therefore Ghanaians participate; that is local content.”

He also explained that opting for private sector participation would mean government will retain some shares in the company, and it wouldn’t be left entirely in the hands of the public sector.

The MP argued further that, the private sector participation would bring some discipline and keep the government on its toes.

“Once the private sector participates and even has 49 percent shares and the government has 51 percent shares, it brings discipline. Ministers and other government appointees cannot abuse their powers.”

Thus, the sale of VRA thermal plants shouldn’t be an option, Mr. Mutawakilu stressed.

“If that is their option, they should rethink because there will be resistance from well-meaning Ghanaians, from the NDC in respect to the sale of the thermal plants,” he warned.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Consider private participation for VRA thermal plants – NDC MP appeared first on Citi 97.3 FM - Relevant Radio. Always.