{"id":160505,"date":"2015-10-17T08:20:38","date_gmt":"2015-10-17T08:20:38","guid":{"rendered":"http:\/\/4cd.e16.myftpupload.com\/?p=160505"},"modified":"2015-10-17T08:20:38","modified_gmt":"2015-10-17T08:20:38","slug":"vra-pushes-for-tariff-increment","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2015\/10\/vra-pushes-for-tariff-increment\/","title":{"rendered":"VRA pushes for tariff increment"},"content":{"rendered":"

The Volta River Authority (VRA) has made a strong case to back calls for tariff increment, in order to sustain its operations.<\/p>\n

Many Ghanaians are against the proposed increment while others say they will accept an increment only if power supply improves significantly.<\/p>\n

The country has been experiencing one of the worst power crises over a year now as demand has outstripped supply.<\/p>\n

[contextly_sidebar id=”HWpHmvUfR1h3o3wo11u50NKuTkk8oiB5″]Amongst other mitigating measures, the country is expecting two emergency power barges from Turkey, with one expected to arrive in November.<\/p>\n

In the midst of the challenges however, the meager megawatts of power being distributed in an ongoing nationwide load shedding, is being threatened by the lack of natural gas from Nigeria to power plants at the Volta River Authority (VRA).<\/p>\n

This follows government\u2019s huge indebtedness of over 180 million dollars to the West African Gas Pipeline Company (WAPCo) and Nigeria Gas Association, N-Gas.<\/p>\n

Government as a result, has advised the Public Utilities Regulatory Corporation (PURC) to consider an upward review of electricity tariffs<\/a><\/strong><\/span> to enable it offset part of its debt to N-Gas.<\/p>\n

In an interview with Citi News on Friday, the Director of Business Development and Sales at the VRA, Kofi Ellis, said an increment in tariff is critical adding the current tariff regime is affecting the operations of VRA.<\/p>\n

\u201cFor as long as we are not paying to cover the fuel and other things, then somebody has to take up that responsibility. And who else is taking that responsibility? It\u2019s difficult to get money from anywhere to make up for the difference so whoever consumes it I expect that person to pay for it especially in a situation where that person using it, his alternative is costing him six times what he or she pays.<\/p>\n

Mr. Ellis explained the company has been managing the situation largely by its over-reliance on bank loans which is not sustainable.<\/p>\n

\u201cWe normally depend on the banks to make up for the difference and it\u2019s a bill that is sitting on my financial books because I went to borrow money to make it up since I have the responsibility to make sure Ghanaians have power. If I borrow money from banks and what I am collecting is not even enough to produce the next kilowatt per hour its worrying. It\u2019s the same source that you want to go the next time to borrow money to buy the next gallon of crude. Already I have come to you to borrow money to buy a gallon which I haven\u2019t finished paying; then I come to you again; you cannot tell me you won\u2019t give me but then you want to be sure that I will pay for the next gallon and that delays the process\u201d he explained.<\/p>\n

He emphasized that \u201csomebody has to intervene to make up for the difference. It\u2019s either the consumer or the government pays for it. If not then we have to look for the difference from the financial market; these are the only options we have.\u201d
\n–
\nBy: Ebenezer Afanyi Dadzie\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"

The Volta River Authority (VRA) has made a strong case to back calls for tariff increment, in order to sustain its operations. Many Ghanaians are against the proposed increment while others say they will accept an increment only if power supply improves significantly. The country has been experiencing one of the worst power crises over […]<\/p>\n","protected":false},"author":29,"featured_media":160506,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[43,38],"yoast_head":"\nVRA pushes for tariff increment - Citi 97.3 FM - Relevant Radio. 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