Ghana: Enclave Power Company Replies Steel, Cement Manufacturers

Enclave Power Company, a power distribution company in the Republic of Ghana, West Africa, has explained why it gave only 22 percent rebate to its customers instead of the 50 percent electricity tariff reduction announced by President Akufo-Addo for businesses.

During his 6th address to the nation on the COVID-19 pandemic, the President of Ghana, Nana Akufo-Addo announced a relief on electricity to support individuals and businesses with full cover for bills of low-income consumers and 50 percent for consumers who fall outside that category.

However, cement manufacturing companies and steel companies located within the Tema Free Zones enclave claimed they have been denied such support from the government, thus, seriously affecting their business.

Addressing a press conference, Rev. Dr George Dawson-Amoah, Executive Secretary of the Chamber of Cement Manufacturers, Ghana, and who doubles as the Chairman of the Association of Ghana Industries Tema, described the situation and attitude of the energy supplier (Enclave Power Company) as unfortunate, and called on the government to, as a matter of urgency, intervene to salvage the situation.

“This is absolutely an unfair trade practice, and it does not augur well for fair competition considering the fact that other cement players and steel companies outside the enclave are enjoying the 50 percent rebate under ECG. We have written to EPC to rectify the anomaly but till now, no practical resolution has been given to the affected parties.”

But reacting to the claims by the Cement Manufacturers and Steel Companies, Managing Director of Enclave Power Company (EPC), Norbert Anku told energynewsafrica.com that following the announcement by the President, they had discussions with the Volta River Authority and GRIDCo to see the way forward.

He continued that VRA agreed to wave 50 percent of the generation charges, but GRIDCo insisted on 100 percent distribution charges.

Mr Anku said he wrote to the Ministry of Energy and Public Utilities Regulatory Commission (PURC) of the decisions by both VRA and GRIDCo, but they failed to act and rather directed them to the Ministry of Finance.

He said, “When we realised that the Ministry was not giving us hope of the government paying for our customers as it did for customers of ECG and NEDCo, we wrote to our customers to inform them of the situation.”

Interestingly, Mr Anku said none of them raised concern, neither did Dr Dawson-Amoah write to EPC on their behalf.

Mr Anku, consequently, expressed shock at the conduct of Dr Dawson-Amoah.

“I was surprised when I heard what Dr Dawson-Amoah said. His action doesn’t augur well at all,” Mr Anku explained.