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ACEP – “Electricity tariffs increased by about 100% in 9 months”

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Energy think tank, African Center for Energy Policy (ACEP) says electricity tariffs in Ghana have experienced a staggering increase of about 100% in the past nine months.

ACEP believes that the power sector continues to pose a major threat to Ghana’s economic sustainability. The sector’s reform has been recognized as crucial to the country’s economic recovery under the International Monetary Fund (IMF) program.

ACEP’s recent report highlights the poor performance of the Cash Waterfall Mechanism (CWM) in March and April 2023, meeting only 11% of the revenue requirement.

The report attributes this poor performance to ECG’s discretionary spending and inadequate accounting.

The Centre claims, “The Cash Waterfall Mechanism recorded its poorest performance in March and April 2023, meeting only 11% of the revenue requirement.”

In addition, ACEP raises concerns about the sustainability of the power sector due to questionable decisions that further threaten its stability. One such decision highlighted by ACEP is ECG’s recent extension of the operation of emergency power plants procured during the “Dumsor” era in 2015, succumbing to political pressure.

ACEP argues that deploying the most efficient power plants in Ghana is crucial for long-term sustainability and cost-effectiveness.

The report stated, “Recently, ECG yielded to political pressure and extended the operation of emergency power plants procured during the ‘Dumsor’ (power crisis) era in 2015.”

ACEP also expressed disappointment in the approval of this extension by the technical and commercial regulators of the power sector, namely the Energy Commission and the Public Utilities Regulatory Commission (PURC).

The report emphasizes that the renewed AKSA power plants are old plants that were overpaid for by Ghanaians. ACEP estimates the total investment cost of the projects to be around $60 million, significantly less than the approximately $700 million earned by the company over the past six years.

ACEP argues, “The AKSA plants are old Watsila engines assembled by a private developer during the Dumsor period in 2015, with units from various countries, including Cyprus and Sri Lanka procured at the cost between $1.2 million and $2 million per unit.”

Furthermore, ACEP questions the justification for assigning a capital recovery charge of about $750 million to these over 20-year-old plants for the next 15 years. The report criticizes the government and ECG for planning to rely on inefficient and unreliable plants instead of investing in modern, state-of-the-art equipment.

ACEP states, “For a power system struggling to recover from persistent power interruptions, planning to build long-term efficient power systems is a fiducial duty of the government and its agencies.”

It emphasized the need for transparency, accountability, and efficient decision-making in the power sector. The report calls for a closer examination of the inconsistencies surrounding the AKSA project and urges holding those involved accountable.
ACEP concludes, “It is imperative to scrutinize these contradictory narratives and rid the sector free from political expediency. It is crucial to hold those involved accountable and ensure efficient decision-making that aligns with the overall welfare of the Ghanaian people.”

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Energy

ECG denies ‘Dumsor’, rules out load-shedding timetable

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The Electricity Company of Ghana (ECG) has reassured the public that there is no need for a load-shedding timetable despite recent power interruptions.

In response to concerns about power supply challenges, ECG stated that the current issues do not warrant the implementation of a load-shedding timetable.

Laila Abubakar, the External Communications Manager at ECG, clarified that the recent power cuts may be due to other factors and emphasized that the notorious ‘dumsor’ phenomenon has not returned.

She assured the public that ECG’s management is diligently working to address the challenges facing the power sector.

“The thing is, we just want people to be aware that when your power goes off, it is not always a matter of load shedding. There are several issues and there are some of them that fall before the doorsteps of ECG. We are doing as much as possible to solve the ones that we can.”

“There aren’t any issues with shedding load. The load shed, I think is what people understand by ‘Dumsor’. But usually, when someone asks me if, there is Dumsor, I ask them what do you understand and what do you think ‘Dumsor’ means. Unfortunately, there wouldn’t be a timetable,” she insisted.

Meanwhile, John Abdulai Jinapor, the Ranking Member on Parliament’s Mines and Energy Committee, has asserted that the ongoing power outages in various parts of the country stem from financial constraints rather than faulty transformers.

Mr Jinapor refuted claims by the ECG that the outages were due to transformer repairs, alleging that the root cause is a shortfall in electricity generation capacity.

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Energy

ECG Ashaiman District uncovers 130 illegal connections

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The Ashaiman District of the Electricity Company of Ghana has discovered a total of 130 illegal connections within its operational area over a three day period.

The discoveries, which were part of a revenue mobilisation project the district was embarking on was started on Monday, March 4, 2024.

Speaking on the progress of the activities to media professionals, the Manager for the District, Ing. Kissi Ohenebeng mentioned that “with the 130 illegal connections seen, summons were given to the respective customers who started reporting to the office from Tuesday, March 5, 2024, to rectify the issues identified.”

He added that “over the three days that the project had been ongoing, his outfit, with support from a number of staff from eight other districts as well as the regional office of the Tema Region of the company had been able to visit over 5000 customers of the power distributor”.

Ing. Ohenebeng, when asked about possible prosecution of those caught with illegal connections indicated that “indeed should customers default in payments, the company is always ready to explore the possibility of addressing the situation at the court”.

He further added that “illegal connection is basically stealing, which makes it a criminal offence and admonished customers to desist from such acts as the consequences could be unpleasant.”

The Ashaiman District of the ECG is under the Tema Region, which also has Tema North, Tema South, Afienya, Prampram, Ada, Nungua, Juapong, Krobo Districts. Staff were deployed from all over the region to Ashaiman District to support the special revenue mobilisation exercise.

The Acting General Manager of the ECG Tema Region, Ing. Daniel Asare-Mensah on his part, encouraged customers to “be ready to pay for power consumed and to pay on time to avoid debt build up.”

Ing. Asare-Mensah indicated that the Ashaiman exercise would end by close of day Friday, March 8, 2024, while a similar project with support from the region’s workforce will be replicated in the other districts.

He also indicated that the Afienya and Prampram Districts will be the next to run such special revenue mobilisation exercises.

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Energy

ECG Replacing 450,000 Old Metres In Accra West Region

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The Electricity Company of Ghana Ltd. (ECG) has commenced an exercise to replace over 450,000 old metres in the Accra West region.

The Company over the course of the exercise would be replacing postpaid, non-smart prepaid and faulty metres in the region with MMS-compliant smart prepaid metres, over the next five months.

The metre replacement exercise is part of the Company’s Loss Reduction Programme (LRP); an initiative to facilitate the installation of smart meters, and to improve energy accounting.

The programme aims to ensure the availability of metres to meet service connection requests and reduce system losses.

The Accra West region General Manager of ECG, Ing. Emmanuel Akinie assured customers of the convenience that the smart prepaid meters offer.

“With the smart prepaid metres, a customer can buy credits unto their metres from the comfort of their homes or anywhere they are, by downloading the ECG Power app, or using the short code *226#”, he said.

Mr. Akinie revealed that the officers undertaking the replacement exercise will identify themselves with official letters from ECG, authorizing their activity, and assured that outstanding balances on the old metre will be accounted for, and transferred to the customers’ new smart prepaid metre.

He said the metre replacement exercise is free, hence encouraged customers to allow the officers into their premises to replace their old metres.

Districts in the Accra West region are Ablekuma, Achimota, Amasaman, Bortianor, Dansoman, Kaneshie, Korlebu and Nsawam.

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