Monday, 12 March 2018

We are working to improve efficiency - ECG assures

Image result for electricity tariff

Adnan Adams Mohammed

The management of Electricity Company of Ghana (ECG) has said, it was working hard to ensure reliable power distribution to avoid “involuntary job loses” for customers as happened during the power crisis.

He said electricity had become an important element in business development and growth and that efforts were being made to prevent job losses during power crisis.

Mr Samuel Boakye Appiah, Managing Director of ECG has claimed that, the lack of cost reflective tariffs, and issues of payment charges to some independent power producers had imposed heavy burdens on the Company’s finances, which threatened the power sector.

However, the Company assured that, it had engaged in renewal research projects to help improve the power system, ensuring effective and reliable power distribution towards the country’s rapid socio- economic development.

Meanwhile, in other news, while Ghanaians are waiting for March 15 to come so they can start to enjoy the anticipated reduced electricity bills.
The ECG in their proposal presented to the Public Utilities and Regulatory Commission (PURC) before the new tariffs annoucement revealed that, government will pay GH¢2.3 billion (GH¢2.364 billion) in 2018 for idle capacity.

This is to cover the capacity charge for 780 megawatts of idle capacity, which translates into 6,287 Gigawatts hours (GWh) from power plants which the ECG has contracted on bilateral contract basis.

According to ECG, the amount will be paid to three companies; namely, ASKA, Karpowership and CENIT, totalling 780MW.

These are contained in a PURC document titled ‘Draft 2018 major electricity and water review results and explanatory notes’.

PURC sources explained that a percentage of the capacity charge has been factored into the new tariff.

In addition, PURC charged the utilities to explore the possibility of selling the power from the excess capacity to neighbouring countries.

The PURC reduced electricity tariffs, it said, would take effect from next Thursday, March 15, 2018, and are expected to be reviewed again in 2019.

The percentage reduction for residential customers is 17.5 percent, with that of non-residential customers at 30 percent.

That of Special Load Tariff Customers (LV, MV & HV) is 25 percent, with the mines will get a 10 percent reduction.