The Chief Executive Officer of the Volta River Authority, Kweku Awotwi, says the authority might be compelled to consider shutting down its thermal plants should electricity tariffs remain unchanged.
The VRA is demanding tariff increases to enable it expand and deliver more efficient services to consumers.
At an inter-agency public forum in Accra on Monday, the VRA and other electricity distribution companies including GRIDCO and ECG pushed strongly for the need for consumers to pay more for electricity.
“When we ask for tariff increase, it’s to reflect the cost of hydro which is fairly inexpensive as well as the cost of thermal which is much more expensive.
“The right tariff will cover our cost, will allow for maintenance, and will allow for expansion. If it’s below that, it makes it difficult to the point that we might consider cutting our thermal – which is unthinkable because people will not get electricity,” Mr Awotwi said.
The VRA currently generates about 800 megawatts of thermal and 1200 megawatts hydroelectric energy.
The last tariff increase was in 2007, Mr Awotwi indicated and although consumption has been increasing since then, consumers pay the amount for a unit of electricity.
Mr Awotwi said power consumption has been increasing with at the rate of GDP increase of 6 – 7 percent annum.
According to him, the increase in tariff is necessary to take care of the current level of demand.
The VRA has already served the Public Utilities and Regulatory Commission (PURC) a proposed tariff range, Mr Awotwi said.
The PURC is expected to start a nationwide consultation on the tariff increases and to draw its conclusions.
The Ghana Grid Company (GRIDCo), which distributes power, also made a strong case for some urge in the pricing of power.
Chief Executive Mr Charles Darko told the forum in Accra that the electricity supply sector is on the verge of a major transformation.
Mr Darko believes power generation in Ghana is likely to experience the recent revolution happening in the telecom industry.
Play attached audio for excerpts of Awotwi's presentation at the public forum
Story by Fiifi Koomson/Myjoyonline.com/Ghana
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