Ghana: GECA Cautions PURC Against Granting ECG’s Request For Tariff Increase Over Forex

The Ghana Electrical Contractors Association (GECA) has cautioned the Public Utilities Regularly Commission (PURC) against granting ECG’s request for tariff increase due to depreciation of the cedi against the international currencies.

The Association is of the view that problems like poor implementation of effective and efficient revenue collection mechanisms should be attended by the ECG to rake in the needed revenues to deal with forex shortfalls facing the company.

A release issued and signed by GECA’s President, Mr Awal Sakib Mohammed, on Tuesday, April 2, 2024, pointed out that the deployment of a comprehensive loss reduction programme and the adoption of productive strategies for managing the company’s limited resources are critical in resolving the issues affecting the efficient and effective functioning of the organisation.

“We urge careful consideration of alternative strategies to mitigate the impact of forex challenges on ECG’s operations, emphasing the importance of sustainable solutions for the benefit of our nation,” said GECA.

It further stated that there is evidence that a significant portion of ECG’s losses stem from various factors, including non-payment for electricity usage by households and businesses, faulty metres and illegal connections, all accounting for inefficiencies in the sector.

Additionally, GECA noted that undue strain on transformers largely attributable to actions or inactions of some ECG personnel further contributes to losses.

“Prevalent practice of connecting premises requiring dedicated transformers to local distribution networks are also affecting the national electricity grid from working well,” the group stated.

GECA further expressed regret that some ECG personnel exploit this situation, colluding with applicants to connect them to already over-loaded transformers for personal gains.

“We advocate for a solution that addresses the root cause of system losses and illegal power theft, namely through rigorous monitoring, maintenance of networks and reinforcement of pertinent status governing power distribution in the country.”

Furthermore, the group proposed a third-party contractor maintenance programmes, expressing the belief that it would inject fresh energy to reduce losses in the ECG’s distribution.

Source: https://energynewsafrica.com