The Managing Editor for energynewsafrica.com, Michael Creg Afful, has commended the National Petroleum Authority (NPA) headed by Dr Mustapha Abdul-Hamid for sanctioning Petro XP for engaging in illegal trading.
NPA fined Petro XP Gh¢340,000 comprising Gh¢10,000 for engaging in third-party supplies for the first time and Gh¢330,000 for the unlawful lifting of petroleum products.
The NPA said if Petro XP failed to comply, it would attract an additional one (1) month’s suspension of its operations.
Commenting, Mr Creg Afful described the action by NPA as highly commendable and urged the NPA boss to continue to sanitise the industry to ensure that only those who can play by the rules operate.
It would be recalled that in June 2022, Mr Creg Afful petitioned the Special Prosecutor to investigate the Tema Oil Refinery (TOR) for selling 260,000 litres of slop oil to Petro XP Ghana Limited and K-Moy Ghana Limited which was not licensed to engage in the downstream petroleum business.
Sections 11(1) and (2) of the NPA Act, Act 691 stipulates that: A person shall not engage in a business or commercial activity in the downstream industry unless that person has been granted a licence for that purpose by the Board. The business or commercial activities of the downstream industry in respect of crude oil, gasoline, diesel, liquefied petroleum gas, kerosene and other designated petroleum products are (a) Importation, (b) Exportation, (c) Re-exportation, (d) Shipment, (e) Transportation, (f) Processing (g) Refining, (h) Storage, (i) Distribution, (j) Marketing, and (k) Sale.
Documents which were available to energynewsafrica.com showed that on 4th May 2022, TOR sold a total of 260 metric tonnes (260,000) of slop oil in their storage tank to K-Moy Ghana Limited and Petro XP Ghana Limited on a cash and carry basis.
Each received 130 metric tonnes of slop oil.
The case is still before the special prosecutor.
Source: https://energynewsafrica.com
More than one hundred applications have been received for the UK’s 33rd offshore oil and gas licensing round, according to the North Sea Transition Authority (NTSA) on Jan. 17.
The round, which closed last week, attracted a total of 115 bids across 258 blocks and part-blocks, from a total of 76 companies.
The process, which will provide a significant boost to the UK’s energy security, opened on 7th October, 2022 and offered acreage across the North Sea.
It included four priority areas, which have known hydrocarbons (oil and gas), in which there was very keen interest and could see production in as little as 18 months.
The bids will now be carefully studied, with a view to awarding licenses quickly and supporting licensees to go into production as soon as appropriate. There are several necessary consents after licensing and before production to ensure these developments are also in line with net zero.
An internal analysis by the NSTA shows that the average time between the dates of recent discoveries and first production has been close to five years. It is hoped that, since they consist of existing discoveries, the priority cluster areas can go into production in an even shorter time.
Dr. Nick Richardson, NSTA Head of Exploration and New Ventures, said, “We have seen a strong response from the industry to the Round, which has exceeded application levels compared to previous rounds. We will now be working hard to analyze the applications with a view to awarding the first licenses from the second quarter of 2023.”
Supporting The UK’s Energy Security
The round is a key part of the NSTA’s drive to support UK energy security, which also includes licensing the Rough gas storage facility, and encouraging operators to look at reopening closed wells.
Oil and gas currently contribute around three-quarters of domestic energy needs. Official forecasts show that, even as demand decreases, they will continue to play a role.
As we transition, maintaining a clean domestic supply to meet that demand can support energy security, jobs, and the UK’s world-class supply chain.
Energy and Climate Minister Graham Stuart said, “Putin’s illegal invasion of Ukraine has led to volatile global energy markets. It’s fantastic to see such interest from industry in this round, with the awarded licenses set to play an important role in boosting domestic energy production and securing the UK’s long-term energy security of supply.”
Reducing Greenhouse Gas Emissions
The drive to reach net zero greenhouse gas emissions by 2050 supports the drive for energy security. New developments tend to have lower emissions than older fields, which can contribute to reducing average production emissions. Consuming gas from the North Sea also reduces the need to consume LNG from elsewhere which has around double the carbon footprint.
Production emissions have decreased by more than a fifth between 2018 and 2021. Projections indicate the sector is on track to meet reduction targets of 10% by 2025 and 25% by 2027 – agreed in the North Sea Transition Deal in 2021.
Since February last year, NSTA interventions have prevented the lifetime emission of 1.4 million tonnes of CO2e, equivalent to taking more than 500,000 cars off the road for a year.
Source: Worldoil.com
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has sanctioned four Oil Marketing Companies (OMCs) for engaging in illicit third-party trading and unlawful lifting of petroleum products.
The companies are Finest Oil, Petrol XP, Glasark Oil and Lilygold Resources Limited.
Per the sanction, Finest Oil will pay a fine of GHS160,000.00 comprising GHS10,000.00 for engaging in third-party supplies for the first time and GHS150,000.00 for the unlawful lifting of petroleum products.
Failure by the company to comply would attract an additional month’s suspension of its operations.
In the case of Petro XP, it would pay a fine of GHS340,000.00 comprising GHS10,000.00 for engaging in third-party supplies for the first time and GHS330,000.00 for the unlawful lifting of petroleum products. If Petro XP fails to comply, it would attract an additional month’s suspension of its operations.
Glasark Oil has been fined GHS95,000.00 comprising GHS10,000.00 for engaging in third-party supplies for the first time and GHS85,000.00 for the unlawful lifting of petroleum products.
Failure by the company to comply will attract an additional one (1) month’s suspension of its operations.
For Lilygold Resources Limited, it would pay a fine not exceeding five (5) times the licence/permit fee for breaking the Authority’s seals, and failure to pay would result in the suspension of its operating licence in addition to paying the penalties.
The NPA cautioned that any company that failed to comply with the rules and guidelines stipulated by the Authority would be subjected to further sanctions.
Source: https://energynewsafrica.com
Ghana has announced plans to commence well drilling in the Voltaian Basin between the fourth quarter of this year and the first quarter of 2024.
The West African nation, through the national oil company, GNPC, is undertaking further studies on a 2D seismic data survey acquired on the unexplored Voltaian Basin in 2021.
A Chinese Joint Venture firm, BGPBAY, was awarded a contract in December 2021 and is currently undertaking studies to enable GNPC to evaluate the hydrocarbon potential of the area.
Speaking at the Ghana Oil and Gas Roadshow in London, UK, last Thursday, the Acting Chief Executive Officer of GNPC, Mr. Opoku Danquah-Ahweneeh said GNPC is continuously evaluating opportunities to leverage its technical competence and financial strength in unlocking the much-needed hydrocarbon potential of the sedimentary basins.
He, therefore, encouraged “…all to strongly consider the opportunities available at this Roadshow, and I assure you that in GNPC, you have a dependable technical and commercial partner working together to execute work programs leading to much-needed oil and gas discoveries.”
The Roadshow saw presentations on an overview of Ghana’s upstream industry as well as Ghana’s Fiscal and Regulatory Regime and Energy Transition Strategy.
There were technical presentations on Farm-in operations and available blocks during Q&A sessions.
In attendance were the Energy Minister, Dr Matthew Opoku Prempeh; Ghana’s High Commissioner to the United Kingdom and the Republic of Ireland, Papa Owusu Ankomah as well as experts from the oil and gas industry.
The GNPC’s strategic objective within the energy transition climate, Mr Danquah noted, “is to accelerate responsible exploitation of Ghana’s oil and gas resources to meet growing energy demand as we continue to embrace and develop green energy projects.”
He revealed the growth strategy led to the establishment of GNPC Explore, a registered subsidiary, with participating Interest in six Exploration and Appraisal licences in offshore basins.
“Our strategic entry into these licences is underpinned by our knowledge-based conviction of hydrocarbon prospectivity and commercial assessment of financial exposure and risk.
“As a paying partner, Explorco forms part of the contractor party and contributes experience and lessons learnt from other exploratory licences to enhance exploration success and reduce project delivery timelines.
“In 2021, GNPC, through our subsidiary, acquired Commercial Interest in Jubilee and TEN fields to increase our participation and revenue from both fields,” he stated.
Meanwhile, GNPC is decommissioning Saltpond Oil Fields in the Central Region.
The decommissioning exercise, which started last year, is being undertaken by a wholly Ghanaian-owned company, Hans and Co. Oil and Gas Company, through a consortium of experts gathered from around the world.
They are to ensure all necessary procedural, technical and social controls and mitigation measures are rightly executed to reduce environmental impact to the barest minimum.
Source: https://energynewsafrica.com
Oil Marketing Companies (OMCs) in the Republic of Ghana have adjusted their pump prices upward after they reviewed prices downward in the first pricing window of January 2023.
The upward adjustment of fuel prices is due to the appreciation of the dollar against the local Ghanaian currency Cedi and rising crude oil prices on the international market.
As of Tuesday afternoon, most of the OMCs had adjusted their pump prices with Pacific Oil selling petrol at Gh¢13.98 per litre while diesel is sold at Gh¢14.44.
Leading Oil Marketing Companies, GOIL, TotalEnergies and Shell, are selling petrol at Gh¢13.60 per litre while diesel is sold at Gh¢15.52 per litre.
TotalEnergies, another major player, is selling petrol at Gh¢13.90 per litre while diesel is sold at Gh¢15.60 per litre.
Petrosol is selling petrol at Gh¢13.58 per litre while diesel is being sold at Gh¢15.51 per litre.
Engen is selling diesel at Gh¢13.60 per litre while petrol is sold at Gh¢15.50 per litre.
Star Oil is selling petrol at Gh¢13.19per litre while diesel is sold at Gh¢15.29 per litre.
Zen Petroleum is selling petrol at Gh13.49 per litre while diesel is sold at Gh15.30.
Alinco Oil is selling petrol at Gh¢13.50 while diesel is being sold at Gh¢14.95
Duke’s Petroleum is selling petrol at Gh¢13.59 per litre while diesel is sold at Gh¢14.95per litre.
Cash Oil is selling petrol at Gh13.50 per litre while diesel is sold at Gh¢15.29 per litre.
Allied is selling petrol at Gh¢13.60 per litre while diesel is sold at Gh¢15.10 per litre.
Puma Energy is selling petrol at Gh¢12.39 per litre while diesel is sold at Gh¢14.99 per litre.
Lucky Oil is selling petrol at Gh¢13.38 per litre while diesel is sold at Gh¢14.20 per litre.
Source: https://energynewsafrica.com
Ghana’s power transmission company, GRIDCo, has honoured Mr John Agyekum Kufuor, Ghana’s former President, with a plaque, for his role in the creation of GRIDCo 15 years ago.
GRIDCo Board Chairman, Ambassador Kabral Blay-Amihere, led the company’s Board and Management to honour the former President on his 84th birthday.
The gesture was to acknowledge his instrumentality in setting up GRIDCo.
GRIDCo was set up, following former President Kufuor’s decision to implement long-standing energy sector reforms from the late 90s to unbundle Ghana’s Energy sector to make it more efficient and attract investment.
The citation on the plaque reads: “During your Presidency, you drove the implementation of critical reforms required in our country’s Energy Sector, culminating in the unbundling of the power sector (i.e. generation, transmission and distribution) in 2006. The diversification of the power sector has inspired efficiency, elimination of barriers to power supply delivery and securing investment in power infrastructure.
“By your vision and actions, the Ghana Grid Company Limited (GRIDCo) was established in December 2006. GRIDCo’s role as the “Operator” of the National Interconnected Transmission System commenced in August 2008. The creation of GRIDCo has enabled a reliable grid for development and improved the accessibility to electricity within Ghana and the West Africa sub-region.
“GRIDCo, whilst wishing you a Happy Birthday, seizes this occasion to express our most sincere appreciation and recognition for your significant contribution to the creation of a revered utility within the West African sub-region and Africa.”
Chief Executive of GRIDCo Ing Ebenezer Essienyi provided the former President with an overview of GRIDCo’s performance and progress over the decade and a half, reiterating the commitment by the Board, Management and staff to ensure GRIDCo meets its mandate in the national interest.
Ing. Ebenezer Kofi Essienyi,CEO of GRIDCo addressing former President John Agyekum Kufuor
Former President Kufuor thanked the GRIDCo delegation, saying: “I am happy that the decision my government took has been a good one because the government’s concern was to take steps to find solutions for the country’s energy issues.”
He recalled how the lack of synchronisation of the power systems in West Africa meant that power in Nigeria – with President Obasanjo, then in power—was ready to transmit.
Power could not be supplied to Ghana then because the grids were not interconnected.
That, he said was the genesis of a sub-regional effort to connect West Africa’s power grids.
Source: https://energynewsafrica.com
China’s Vice Premier Liu He told the World Economic Forum that life has returned to normal in the Asian nation, with Covid infections now past their peak.
Liu He told the WEF at Davos on Tuesday that China will return to its pre-pandemic growth trend this year, Bloomberg reported. In its latest MOMR, also published on Tuesday, OPEC said it sees China’s economic growth forecasts unchanged from last month’s views, at 3.1% for last year and 4.8% for 2023. The oil exporter’s group adjusted world oil demand downward in the third quarter last year, with China’s demand slipping. OPEC sees global oil demand growth unchanged this year, according to Tuesday’s MOMR, at 2.2 million bpd, although OPEC cautioned that “this forecast remains surrounded by uncertainties including global economic developments, shifts in Covid-19 containment policies, and geopolitical tensions.
According to OPEC, China’s crude oil imports continued on the path of recovery in November at 11.4 million bpd, with preliminary data showing its imports remained at “similarly high levels.”
China released its fourth-quarter economic data earlier in the day, which showed China’s economy—the world’s second biggest—grew 2.9%. While this beat analyst expectations, China’s full-year 2022 economic growth of 3% came in significantly below China’s official target of 5.5% due to its zero-Covid policies, which are now behind it.
The oil industry is closely monitoring China’s economic data to get a handle on global crude oil demand growth, with OPEC’s decisions
Analysts are revamping their estimates for China’s economic data—and its thirst for oil—based on their recent Covid policy shift that has backed away from its tightly implemented zero-Covid strategy.
Source: Oilprice.com
The newly appointed Chairman of the ECOWAS Regional Electricity Regulatory Authority (ERERA), Ing Kocou Laurent R. TOSSOU, has led a team to pay a courtesy call on the Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr. Ishmael Ackah, and Management of the Commission.
According to a story posted on the PURC website, the ERERA Chairman was accompanied by Dr. Haliru Dikko, ERERA Council Member; Uwem Thompson, Communication Officer; Musah Imam, ICT Officer, and Ofosuhene Apenteng-Taryiro, Head of Administration and Finance.
The visit by the Chairman of ERERA and his team was to acquaint himself with the activities of the Commission and also to inform the Commission of current activities undertaken by ERERA, prospects and to strengthen the already existing relationship between the PURC and ERERA.
The main objective was how to build mutual relationships in the electricity sector.
According to Ing Kocou, ERERA has followed and monitored the activities of the Commission in the past years and is convinced of the Commission’s independence in the performance of its functions.
He applauded PURC for signing a Memorandum of Understanding (MOU) with the Ghana Institute of Management and Public Administration (GIMPA) to set up a Regulatory Centre of Excellence, which would help in building capacities of electricity, natural gas and water regulatory agencies as well as utility service providers in West Africa.
In his opening remarks, the Executive Secretary of PURC, Dr Ishmael Ackah, on behalf of the PURC, expressed appreciation to Ing Kocou and his team for the visit.
He indicated that the Commission, as a multi-sectoral independent regulatory agency, has been operating in Ghana for the past 25 years.
He noted that the Commission has offices in the ten traditional regions of Ghana with established Consumer Service Committees in bigger regions.
He also noted that the Commission is present on most social media platforms including Twitter, Facebook, LinkedIn and WhatsApp platforms for assembly members, opinion leaders etc.
Dr. Ackah further explained that the Commission has instituted the Ghana Utility Performance Index (GUPI) to benchmark and monitor the performance of regulated utilities across regions in Ghana and to encourage peer learning from each other.
He intimated that the Center of Excellence is expected to be inaugurated by the close of February 2023.
To further deepen transparency and accountability and ensure the quality of service delivery by utility service providers to consumers, the Commission has initiated the Consumer Service Clinics to serve as a one-stop shop to bring consumers and utility service providers together at specific times to enable the utilities to receive and resolve complaints of consumers.
Dr. Ackah outlined the theme for 2023 as ‘Year of Operational Efficiency’.
This would be done by enforcing compliance through monitoring and regulatory audits; educating stakeholders on their rights and responsibilities; building relationships with key sector stakeholders to enhance efficiency within the electricity, water and natural gas sectors; and enhancing data management for efficiency in the operations of the Commission and the regulated Utilities.
PURC staff present were the Director, Water Services and Performance Monitoring, Ing Emmanuel Fiati; Director, Legal Services, Mrs. Nancy Atiemo; Director, Regional Operations, Alhaji Jabaru Abukari; Director, Energy Services and Performance Monitoring, Ing Fred Amui Oblitey; Director, Research and Corporate Affairs, Dr Eric Obutey; Head of Corporate Affairs, Mr Robert Aziz Tia.
The rest were Deputy Head, Media Relations, Events and Protocol, Mrs Deborah Bonney; Deputy Head, Digitalization, Mr Prince Nana Yaw Kessie; Senior Research Officer, Mr Stephen Ekow Bryan; and Head, Executive Secretary’s Secretariat, Ms Maame Esi Eshun.
Source: https://energynewsafrica.com
The energy crisis in Europe isn’t over yet, as only the mild weather has helped the continent avoid gas shortages so far this winter, Ignacio Galan, executive chairman of Spanish energy giant Iberdrola, said on Monday.
“As long as energy markets are over-reliant on fossil fuels and exposed to geopolitical events, they will remain fragile,” Galan said, as carried by Bloomberg.
“We should not think that the energy crisis is over for good.”
At the end of last year, the top executives at other European majors, including BP’s Bernard Looney and Eni’s Claudio Descalzi, said that Europe was more or less prepared to face this winter with nearly full gas storage sites and a steady flow of LNG imports.
“But as we said, the issue is not this winter. It will be the next one, because we are not going to have Russian gas – 98% [less] next year, maybe nothing,” Descalzi said at the ADIPEC conference in Abu Dhabi in November.
According to Iberdrola’s Galan, “It is both disturbing and ironic that only unusual winter temperatures driven by climate change saved large parts of the Northern Hemisphere from much more serious threats to energy security and affordability this winter.”
The mild weather at the start of 2023, comfortable gas inventory levels, and still weak demand in Asia dragged European benchmark gas prices down to a 16-month low on Monday.
That was due to “ample supply and on reports Chinese importers are trying to divert February and March shipments to Europe amid weak prices at home and high inventories,” according to Ole Hansen, Head of Commodity Strategy at Saxo Bank.
Still, with the plunge in Russian pipeline gas deliveries, Europe will need “huge volumes” of LNG this year, commodity trader Trafigura said in December.
“While Europe should avoid a blackout this winter by drawing on inventories and cutting demand, it will need to import huge volumes of LNG in 2023 given the massive reduction in flows from Russia,” Trafigura said in its annual report for the year to September 30.
Source:Oilprice.com
The International Renewable Energy Agency’s global membership of 168 countries has reappointed the incumbent Director-General for a second term of four years.
Francesco La Camera has served as Director-General of IRENA since 4 April 2019.
Furthermore, IRENA Members have agreed on the Agency’s Medium-Term Strategy (MTS) for the coming five years.
The new work strategy for 2023-2027 sets out a new direction for the Agency focused on urgent and targeted action, unparalleled international cooperation, and continuous innovation.
Against the backdrop of a rapidly shrinking timeline to deliver on global climate and developments goals by 2030, this MTS is the last full five-year cycle before 2030 that outlines IRENA’s contribution to global energy efforts.
It focuses on systemic changes in energy and beyond with greater focus on access and equality, on interaction between renewables and energy security and resilience and an additional pillar on regional and country level work.
Francesco La Camera, Director-General of IRENA said: “We must build a new energy system with the tools and systems of the future, not the past. Just as we innovate to improve technologies, we must innovate to reimagine international cooperation for the new energy era.”
He added: “A renewables-based transition is a vehicle for climate-proof energy systems, improved energy security, reduced inequality and long-overdue universal access. I am deeply humbled to have been appointed for a new term as Director-General. I will continue to work tirelessly to realise IRENA’s new global mission.”
Source: https://energynewsafrica.com
The Association of Oil Marketing Companies (AOMVs) in the Republic of Ghana has rejected claims by some persons that the oil marketing companies overpriced fuel at the pumps during the first pricing window in January 2023, as reported by some media outlets in the West African nation.
According to the Association, overpricing pertains to regulated markets so for people to perceive overpricing in a deregulated market is ironic.
During the second pricing window in December 2023, petrol was sold at Gh¢13.40 per litre while diesel was sold at Gh¢15.85 per litre.
However, oil marketing companies adjusted pump prices down during the first pricing window in January, with leading OMCs selling petrol at Gh¢12.40 per litre while diesel was sold at Gh¢14.60 per litre.
Despite the reduction in fuel prices, some persons in the industry accused OMCs of overpricing fuel.
In a statement issued by Kwaku Agyeman-Duah, CEO of the Association of Oil Marketing Companies and Industry Coordinator, he said the Association found it very disheartening and a setback that some pseudo and self-acclaimed experts who have been through this journey in the industry continue to malign the OMCs/LPGMCs or use this process to, as a subterfuge, to misinform the public and turn them against the well-meaning OMCs/LPGMCs who are handling their business well.
Though Ghana’s petroleum downstream industry is deregulated, Mr Agyeman-Duah said there is a formula ( Petroleum Price Build-up) that serves as a guide for all Oil and LPG Marketing Companies in determining their ex-pump prices.
Among the guide is the determination of the forex (the relationship between the Cedi and the Dollar).
Mr. Agyeman-Duah said players in the downstream resort to the forex from the Bank of Ghana and not that of the regulator (NPA) as the self-acclaimed experts in the industry would want the general public to believe.
Unhappy about the development, Mr. Agyeman-Duah said the attitude of antagonising the OMCs/LPGMCs in the 21st century is not only primitive but also non-supportive of the toils that the OMCs/LPGMCs bear in the economy.
“Trying to incite the general public against genuine business people is very counter-productive and tantamount to killing the industry, especially without facts,” he said.
He appealed that anyone seeking some education or clarification on the price build-up can contact the offices of their regulator, the National Petroleum Authority (NPA) or the Association of Oil Marketing Companies (AOMC) at any time, and not be misled by unguided statements by certain individuals with truncated objectives.
“Additionally, an educational forum on petroleum pricing would be organised for the general public, and the schedule thereof would be communicated in due course,” the statement ended.
Ghana’s Public Utilities Regulatory Commission (PURC) has announced a 29.96 per cent and 8.3 per cent increment in electricity and water tariffs effective 1st February 2023.
The announcement follows the conclusion of regulatory process for the quarterly adjustment of tariffs by the PURC.
The quarterly tariffs review mechanism seeks to track and incorporate changes in key factors used in determining natural gas, electricity and water tariff.
In deciding on the end user electricity tariffs, the Commission said it took into consideration four key factors before arriving at the approved tariff for electricity.
It said it considered the Ghana Cedi/US Dollar exchange rate, inflation, generation mix and weighted cost of average cost of natural gas.
A statement issued by the PURC and signed by its Executive Secretary Dr. Ishmael Ackah on Monday said since the announcement of the major tariff in August 2022, these key variables underlying the rate setting have changed significantly.
The Commission therefore decided to increase the average end-user tariffs for electricity to 29.96% across the board for all consumer groups.”
“The average end-user tarrif for water for water has also been increased by 8.3% .The Commission, however approved varying rate adjustment including some reductions for selected industrial and commercial consumers as part of the ongoing restructuring of the existing water structure,” the PURC statement said.
Below is the full statement by PURC
The Public Utilities Regulatory Commission (PURC) has concluded its regulatory process for the quarterly adjustment of utility tariffs covering the first quarter of 2023.
The process is in conformity with the Quarterly Tariff Review Mechanism and Guidelines as communicated in the Commission’s August, 2022 major tariff review decision.
The Quarterly Tariff Review Mechanism seeks to track and incorporate changes in key factors used in determining natural gas, electricity, and water tariffs. The objective is to maintain the real value of cost of supply of these utility services and ensure that utility companies do not under- or over-recover.
Under-recovery has negative implications for the ability of the companies to supply service to consumers, and has the potential of causing outages of electricity (DUMSOR) and water supply. Over-recovery unnecessarily overburdens consumers of electricity and water.
The Quarterly Tariff Review Mechanism is meant to ensure that none of these happens.
For the end-user electricity tariffs payable by consumers, the Commission considered four key factors in arriving at its decision. These were the Ghana Cedi/US Dollar exchange rate, inflation, generation mix and the weighted average cost of natural gas.
Since the announcement of the major tariff in August 2022, these key variables underlying the rate setting have changed significantly. For example, the weighted average Ghana Cedi US Dollar exchange rate used for the major tariff review was GHC7.5165 to the US Dollar. Since then, we have witnessed the depreciation of the Cedi against the US Dollar and other major currencies. The projected weighted average Ghana Cedi US Dollar exchange rate used in First Quarter 2023 Tariff Analysis is GHS10.5421/USD.
Additionally, the weighted average inflation figure used for the major tariff has seen a four-fold increase. Together with exchange rate movements this has negatively affected the ability of the utilities to purchase critical inputs required for their operations. The Commission used a projected inflation rate of 42.63% in its tariff analysis for the First Quarter of 2023.
The Weighted Average Cost of Gas (WACOG) used for First Quarter of 2023 is USD6.0952/MMBtu. In the major tariff review in September 2022, the WACOG was USD5.9060/MMBtu. With respect to electricity generation mix, a hydro-thermal mix of 26.11% for hydro and 73.89% for thermal was used for First Quarter of 2023.
The combined effect of the Cedi/US Dollar exchange rate, inflation and WACOG is that the utility companies are significantly under-recovering and require an upward adjustment of their tariffs in order to keep the lights on and water flowing.
The PURC is equally mindful of the current difficult economic circumstances, but notes that the potential for outages would be catastrophic for Ghana and has to be avoided. The PURC therefore sought to balance prevention of extended power outages and its deleterious implications on jobs and livelihoods with minimising the impact of rate increases on consumers.
The Commission therefore decided to increase the average end-user tariff for electricity by 29.96% across the board for all consumer groups (Table 1). The average end-user tariff for water has also been increased by 8.3% (Table 2). The Commission, however, approved varying rate adjustments including some reductions for selected industrial and commercial consumers as part of the ongoing restructuring of the existing water rate structure.
The PURC is grateful to all stakeholders for their support as it continues to implement quarterly tariff reviews in accordance with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity and Water Tariffs. In doing so, the Commission will continue to equitably balance the interests of the Utility Service Providers and Consumers and hold service providers to strict adherence to regulatory standards and benchmarks.
The Commission’s decision will be published in the Gazette in due course and will be available on the Commission’s website: www.purc.com.gh
Dr. Ishmael Ackah
Executive Secretary
Ghana’s power transmission company, GRIDCo, has restored power supply to all areas earlier affected by the outage on its transmission lines.
“GRIDCo’s National Interconnected Transmission System has also been fully restored and is stable,” the company said in a statement to update Ghanaians.
Parts of the West African nation experienced power outage when a raging bush fire under the high voltage lines of GRIDCo, near Tarkwa in the West Region, caused its 330kV Aboadze-Anwomaso line to trip, thereby, resulting in several lines in the western corridor of the grid triggering a system disturbance, causing all thermal plants and the Bui generators and customer loads to trip.
The company said a fire tender from Tarkwa Goldfields was immediately mobilised to the site to bring the fire under control.
It said restoration of the grid commenced immediately.
In a statement issued by the corporate communication section, it said the power supply was restored at about 17:57 GMT
“GRIDCo extends its appreciation to the Ghanaian public for its patience as efforts were made to restore the NITS and power to Ghanaians,” the statement noted.
GRIDCo went on to apologise to its customers for the inconvenience caused by the incident.
Source: https://energynewsafrica.com
The Female workforce of the National Petroleum Authority in the Republic of Ghana has donated food items and undisclosed amount of money to inmates of Village of Hope at Gomoa Fetteh in the Central Region.
The support to the orphanage is part of the corporate social responsibility of the Authority.
The items, including food stuff such as meat, fish, tomatoes, rice, oil, four burner gas stove, exercise books, T.rolls, soft drinks, biscuits and hand sanitizers and nose masks, are part of the workers’ contribution to the home, especially at a time of merrymaking.
The outgoing Chairman of the Association, Madam Ayi Yakubu Zakariah, told newsmen they recognized the hardwork operators of the home are putting in to shape the future of the children, most of whom were rescued from the hands of human traffickers on the Volta Lake.
She was optimistic that the items would be put to good use, and expressed the Authority’s desire to do the best it could to ensure the children are given adequate support and care.
The Deputy Managing Director at the Village of Hope, Mr Kweku Sarkodie, who received the items on behalf of the orphanage, assured the NPA that the students would be given the needed support to ensure they become good citizens.
He said most of the students are educated to the level of university and this year alone, 15 of them have been admitted into various Universities in the country bringing the number to university from the Centre to 60.
Mr. Sarkodie was grateful to NPA for the continuous support over the years.
Source: https://energynewsafrica.com
The gesture was to acknowledge his instrumentality in setting up GRIDCo.
GRIDCo was set up, following former President Kufuor’s decision to implement long-standing energy sector reforms from the late 90s to unbundle Ghana’s Energy sector to make it more efficient and attract investment.
The citation on the plaque reads: “During your Presidency, you drove the implementation of critical reforms required in our country’s Energy Sector, culminating in the unbundling of the power sector (i.e. generation, transmission and distribution) in 2006. The diversification of the power sector has inspired efficiency, elimination of barriers to power supply delivery and securing investment in power infrastructure.
“By your vision and actions, the Ghana Grid Company Limited (GRIDCo) was established in December 2006. GRIDCo’s role as the “Operator” of the National Interconnected Transmission System commenced in August 2008. The creation of GRIDCo has enabled a reliable grid for development and improved the accessibility to electricity within Ghana and the West Africa sub-region.
“GRIDCo, whilst wishing you a Happy Birthday, seizes this occasion to express our most sincere appreciation and recognition for your significant contribution to the creation of a revered utility within the West African sub-region and Africa.”
Chief Executive of GRIDCo Ing Ebenezer Essienyi provided the former President with an overview of GRIDCo’s performance and progress over the decade and a half, reiterating the commitment by the Board, Management and staff to ensure GRIDCo meets its mandate in the national interest.
Source: https://energynewsafrica.com 
Below is the full statement by PURC
The Public Utilities Regulatory Commission (PURC) has concluded its regulatory process for the quarterly adjustment of utility tariffs covering the first quarter of 2023.
The process is in conformity with the Quarterly Tariff Review Mechanism and Guidelines as communicated in the Commission’s August, 2022 major tariff review decision.
The Quarterly Tariff Review Mechanism seeks to track and incorporate changes in key factors used in determining natural gas, electricity, and water tariffs. The objective is to maintain the real value of cost of supply of these utility services and ensure that utility companies do not under- or over-recover.
Under-recovery has negative implications for the ability of the companies to supply service to consumers, and has the potential of causing outages of electricity (DUMSOR) and water supply. Over-recovery unnecessarily overburdens consumers of electricity and water.
The Quarterly Tariff Review Mechanism is meant to ensure that none of these happens.
For the end-user electricity tariffs payable by consumers, the Commission considered four key factors in arriving at its decision. These were the Ghana Cedi/US Dollar exchange rate, inflation, generation mix and the weighted average cost of natural gas.
Since the announcement of the major tariff in August 2022, these key variables underlying the rate setting have changed significantly. For example, the weighted average Ghana Cedi US Dollar exchange rate used for the major tariff review was GHC7.5165 to the US Dollar. Since then, we have witnessed the depreciation of the Cedi against the US Dollar and other major currencies. The projected weighted average Ghana Cedi US Dollar exchange rate used in First Quarter 2023 Tariff Analysis is GHS10.5421/USD.
Additionally, the weighted average inflation figure used for the major tariff has seen a four-fold increase. Together with exchange rate movements this has negatively affected the ability of the utilities to purchase critical inputs required for their operations. The Commission used a projected inflation rate of 42.63% in its tariff analysis for the First Quarter of 2023.
The Weighted Average Cost of Gas (WACOG) used for First Quarter of 2023 is USD6.0952/MMBtu. In the major tariff review in September 2022, the WACOG was USD5.9060/MMBtu. With respect to electricity generation mix, a hydro-thermal mix of 26.11% for hydro and 73.89% for thermal was used for First Quarter of 2023.
The combined effect of the Cedi/US Dollar exchange rate, inflation and WACOG is that the utility companies are significantly under-recovering and require an upward adjustment of their tariffs in order to keep the lights on and water flowing.
The PURC is equally mindful of the current difficult economic circumstances, but notes that the potential for outages would be catastrophic for Ghana and has to be avoided. The PURC therefore sought to balance prevention of extended power outages and its deleterious implications on jobs and livelihoods with minimising the impact of rate increases on consumers.
The Commission therefore decided to increase the average end-user tariff for electricity by 29.96% across the board for all consumer groups (Table 1). The average end-user tariff for water has also been increased by 8.3% (Table 2). The Commission, however, approved varying rate adjustments including some reductions for selected industrial and commercial consumers as part of the ongoing restructuring of the existing water rate structure.
The PURC is grateful to all stakeholders for their support as it continues to implement quarterly tariff reviews in accordance with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity and Water Tariffs. In doing so, the Commission will continue to equitably balance the interests of the Utility Service Providers and Consumers and hold service providers to strict adherence to regulatory standards and benchmarks.
The Commission’s decision will be published in the Gazette in due course and will be available on the Commission’s website: www.purc.com.gh
Dr. Ishmael Ackah
Executive Secretary
Mr. Sarkodie was grateful to NPA for the continuous support over the years.
Source: https://energynewsafrica.com