Ghana: Why ECG, NEDCo Proposed 148%, 113% Increase In Distribution Service Charges
Power utility companies in the Republic of Ghana have proposed a huge jump in their distribution service charge for consideration by the country’s utility regulator Public Utilities Regulatory Commission (PURC).
The Electricity Company of Ghana (ECG), which is responsible for power distribution in southern Ghana, has proposed 148 per cent for its Distribution Service Charge 1 and 28 per cent for Distribution Service Charge 2, while Northern Electricity Distribution Company (NEDCo) is responsible for Bono and Northern Ghana has proposed 113.4 per cent for Distribution Service Charge for the year 2022.
ECG also proposed an average increase of 7.6 per cent in Distribution Service Charge (DSC) over the next four years.
Both utility service providers argued that the inadequate approved tariffs mainly the Distribution Service Charge have made it difficult for them to survive the numerous challenges including unstable macro-economic variables such as inflation and exchange rates; increase in the world market prices of distribution inputs; increased cost of operations due to rapid customer growth, high cost of power procurement etc.
“The investment plan from 2022 to 2026 and the ongoing projects have been factored in this proposal.
“This is based on the selection of committed and feasible projects to be implemented within the tariff period.
“The total cost of all three categories of investment is USD1.51 billion.
“Out of the total planned investment cost of USD959.85 million, the amount incorporated in this tariff proposal is USD839.09 million. This excludes the cost of electricity access projects (USD33.5m) and 10% contingency (87.26m),” ECG explained.
While ECG is justifying its proposed increase in Distribution Service Charges based on planned projects for network expansion, loss reduction, improvement in operational efficiency (including revenue mobilization) and system reliability for the next five years costing US1.51 billion, NEDCo, on the other hand, said its operations are very sparse with a long distribution network with a very limited number of Special Load Tariff (SLP) customers (0.01%).
According to NEDCo, the quality of customers within its jurisdiction does not provide NEDCo with the needed revenue to cover at least its fixed and direct variable costs.
It added the procurement of Capital Expenditure items for distribution network expansion, consumer connections, meters and information technology infrastructure is mostly denominated in forex.
The power distributor said the variable cost per unit in 2022 is expected to be GHp49.14 and the fixed cost per unit for the same period is also projected to be GHp18.03, totalling GHp67.17.
“To enable NEDCo recover, at least, its cost of service and fixed cost, NEDCo proposes GHp67.1650/kWh for Distribution Service Charge for the year 2022, representing 113.0% of the prevailing distribution service charge,” it said.
NEDCo planned projects for the next five years, spanning 2022 to 2027, will cost about US$183.33 million.
To be able to surmount the challenges facing NEDCo, it said various projects have been planned for future implementation when money becomes available.
Among some of the projects is the Tamale Metropolitan Area Split Smart Pre-Payment Meters project (costing US$26.131m), Procurement of Distribution Materials (costing US$1.438m), Construction of Lamashegu Primary Substation (costing US$9m), 100km conductor upgrade (US$1.287m), Streetlights Metering Project (US$25m) and the Kexim Project (US$112.6m).
Source: https://energynewsafrica.com
Ghana: NEDCo Proposes Scrapping Of Lifeline Tariff
The Northern Electricity Distribution Company (NEDCo) in the Republic of Ghana has proposed to the country’s utility regulator, PURC, to either scrap the lifeline tariff or reduce it from 50kwh to 30kwh.
Lifeline customers are households that use, on average, between zero and 50 kWh of electricity per month.
According to NEDCo, lifeline customers constitute about 46 per cent of the company’s total customer population of 1,136,050.
The lifeline customers, according to NEDCo, consume power at Ghp32.6060/kWh which is far below the total of the current approved DSC rate of GHp31.5307/kwh, TSC GHp7.9846/kwh and BGT tariff of GHp33.7957/kwh, which is GHp73.311/kwh.
This means that NEDCO is making losses of GHp 40.705/kwh for power sold to lifeline customers.
Source: https://energynewsafrica.com
Ghana: Gov’t Owes Us Gh¢1.06 Billion-NEDCo
The Government of Ghana’s indebtedness of Gh¢1,069,406,304.04 to the Northern Electricity Distribution Company (NEDCo) is crippling the operations of the company, energynewsafrica.com can report.
Out of the figure, GH¢75,083,739.43 represents subsidies that the Government of Ghana has not been able to pay.
NEDCo has a customer population of about 1,136,050 as of the end of 2021.
This comprises 84.96 per cent of residential customers, 15.03 per cent of non-residential and 0.01 per cent of Special Load Tariff (SLT) customers.
Additionally, about 46 per cent of the total customer population (516,547) are lifeline customers who consume power at GHp32.6060/kwh which is far below the total of the current approved DSC rate of GHp31.5307/kwh, TSC GHp7.9846/kWh and BGT tariff of GHp33.7957/kwh, which is GHp73.311/kwh.
NEDCo supplies electricity to the government through state institutions including Ministries, Departments and Agencies (MDAs) that are connected.
While prepaid meters are being installed for customers in the private sector, those in the government sector are still on credit meters, resulting in the accumulation of the huge debt.
Sadly, the government has not been paying the MDA debts as expected.
“As of December 2021, the Government of Ghana owed NEDCo about GH¢ GH¢1,069,406,304.04 with subsidies and street lighting in bills. These debts have made it difficult for NEDCo to meet its debt obligations to suppliers of electricity,” NEDCo said in its 2022-2026 Tariff proposals submitted to Public Utilities Regulatory Commission for consideration.
Source: https://energynewsafrica.com
Ghana: ECG Recovers Gh¢178.44 Million From Power Theft
Ghana’s southern power distribution company, ECG, discovered that about 12,416 people in the West African nation had connected power illegally and were consuming it between 2019 and 2021.
The total power consumed by the aforementioned people accounted for 157.16 Gigawatts hour of electricity.
This represents an amount of Gh¢178.44 million (equivalent of US$23,018,760) being recovered by ECG.
Out of the total number of people who were identified to be consuming power illegally, 1,047 were referred to the ECG’s legal department for prosecution to serve as a deterrent to others.
Besides the power theft, ECG said it had to deal with the theft of copper from distribution transformers, utility poles, transformer oil from energised transformers, underground cables, overhead conductors, etc.
ECG revealed these in a tariff proposal submitted to Ghana’s utility regulator, Public Utilities Regulatory Commission (PURC).
“These criminal acts have several adverse consequences including the obvious economic impact, service disruptions and possible danger to ECG personnel, the public and persons involved in the theft,” ECG said.
The ECG mentioned some measures introduced to mitigate the impacts of theft on the company’s operations as working with scrap dealers and law enforcement officials, fencing, warnings signs, adequate lighting of installations, patrolling and intrusion detection for deterrence, expansion of the Advanced Metering Infrastructure (AMI) to remotely monitor the loads and consumption of high consuming Non-Special Load Tariff (NSLT) for early detection of theft.
Source: https://energynewsafrica.com
Ghana: ECG Declares Gh¢625.34 Million As Bad Debt
Ghana’s southern power distribution company, ECG, has declared Gh¢625.34 million (equivalent of US$80,668,860) as bad and doubtful debts over three years spanning 2019 to 2021.
In 2019, ECG made provision for Gh¢58.51million as bad and doubtful debt in line with the company’s policy.
The figure shot up to Gh¢276.50 million and Gh¢290.33 million in 2020 and 2021 respectively.
These figures were contained in ECG’s 2022-2026 tariff proposals submitted to the Public Utilities Regulatory Commission (PURC) for consideration.
“This is based on the company’s policy on provision for bad and doubtful debts,” ECG said.
“Majority of these bad debt emanates from demolished structures due to road constructions, relocation of slums, removal of temporary structures, illegal transfer and removal of meters by unscrupulous customers (mostly SHEP areas),” it explained.
Touching on the measures being adopted to minimise the bad and doubtful debts, ECG said it regularly engages Districts and Municipal Assemblies to ensure that information on demolishing exercises, road constructions, etc. are communicated to ECG in good time to avoid this problem.
It, however, noted that despite bad and doubtful debts being part of the company’s policy, the board, for the past 10 years, has not approved them even though the necessary provisions were made in the budgets.
Source: https://energynewsafrica.com
Saudi Energy Minister Blames Lack Of Investment For Surge In Fuel Prices
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Monday the gap between crude prices and prices for jet fuel, diesel and gasoline was around 60% in some cases due to lack of investment in refining capacity.
The prince, speaking at an aviation summit in Riyadh, said the world needed to look at energy security, sustainability and affordability as a whole.
“All mobility fuels have skyrocketed … and the gap between crude prices and these products in some cases is actually 60%,” he said.
The minister did not give comparative figures. But, as an example, the average refining margin for energy major BP (BP.L) was 18.9% in the first quarter of this year compared with 8.7% in the first quarter of 2021.
Asked whether geopolitical events in Europe would speed up the transition to cleaner energy or hinder it in the medium-term, the minister said: “I think it provided us with a reality check to how aspirations … can be compromised by the realities of the day.”
Even before the Ukraine crisis, he added, the “la la land scenario about net-zero had been smacked with so many realities”, including cost.
When discussing sustainability goals, the minister used the phrase “low carbon” rather than “zero carbon”, saying that was “the difference between la la land and reality”.
Saudi Arabia and other resource-rich developing nations have often pushed back against calls for a rapid move away from fossil fuels, arguing for a more orderly transition.
Source: Reuters
Gambia: Abdoulie Jobe Appointed New Petroleum & Energy Minister
The Gambia has appointed Hon. Abdoulie Jobe, a former minister of Trade, Regional Integration and Employment during President Yahay Jammeh era as the new Minister of Energy and Petroleum, energynewsafrica.com can report.
He was appointed to replace Hon. Fafa Sanyang.
Until his appointment last Wednesday May 4,2022, Mr. Jobe served as the Head of Study and Planning at The Gambia River Basin Development Organisation (OMVG) Dakar Office.
He previously served as the Director-General of the Gambia Public Utilities Regulatory Authority (PURA).
He also once served as the Managing Director of the National Water and Electricity Company (NAWEC).
Minister Jobe studied Mechanical Engineering and Water Resource Engineering.
He has over 22 years of leadership experience that includes Supply Chain, Logistics, and Distribution Management positions with high-profile companies (Jack in the Box, Carl’s Jr. Restaurants, MBM Customized Foods Distribution, Panda Restaurant Group, others).
Source: https://energynewsafrica.com
Ghana: GRIDCo Attributes Saturday’s Outage To Faulty Equipment
The Ghana Grid Company (GRIDCo) has attributed last Saturday’s outage in parts of Ghana to system disturbance as a result of faulty equipment on the Takoradi Extension-Winneba line.
According to a statement issued by GRIDCo on Monday, the development forced all generating plants in Aboadze, Tema (except Kpone Thermal Power Plant), Bui and Kpong to shut down.“This caused forced outages within the coastal corridor of the national grid which led to power supply interruptions in some parts of Greater Accra, Western/Central, Middle and Northern parts of the country.
“Restoration began immediately and supply was restored to all bulk supply points by 23:29 hrs.”
It said Akosombo and Kpone Thermal Power Plants continued to be in service.
GRIDCo assured Ghanaians that it would continue to work towards the provision of a reliable power system for Ghana’s socio-economic development.
“We apologise for any inconvenience caused,” the statement ended.
Source: https://energynewsafrica.com
Liberia Hit By Jet Fuel Scarcity
Liberia has been hit with shortages of aviation fuel and is expected to ease on Tuesday, May 17, 2022, when the West African nation will receive fuel supply.
A report by Frontpage Africa quoted Conex Energy Inc., the sole company supplying fuel to airlines coming to Liberia, said that its next consignment of jet fuel will arrive in the country on May 17.
This means airlines flying to Liberia may not be able to refuel at the Roberts International Airport, and this could potentially lead to the suspension of some flights to Monrovia or cause a major shift in their flight schedules to the country.
“We have communicated to all relevant stakeholders, including the Ministries of Commerce, Transport, The Roberts International Airport (RIA) and The Liberia Petroleum Refining Company (LPRC).
“This will allow our customers and stakeholders time to plan accordingly,” Conex indicated in a statement.
This is occurring at a time when the Roberts International Airport is going through an energy crisis causing flights including SN Brussels and Royal Air Maroc to divert landing to neighbouring Sierra Leone.
Royal Air Maroc, SN Brussels and Kenya Airways often refuel in Liberia due to the distance they cover before landing in Liberia.
Source: https://energynewsafrica.com
South Africa: Eskom Suspends Power Cuts Earlier Than Planned
South Africa’s state-owned power utility, Eskom, has suspended power cuts after managing to return more units in service.
“The power system has recovered to a point where rotational blackouts can be stopped after generation units at Matla, Majuba, Grootvlei and Kendal power stations, as well as the non-commercial Kusile unit which has returned to service,” Eskom Holdings SOC Ltd said in a statement on Saturday.
A further unit each at Matimba and Arnot power stations are expected to return to service during the day.
Eskom started cutting 2,000 megawatts from the national grid on May 3, saying it would have to persist until 5 a.m. on May 9.
The cuts were reduced to 1,000 megawatts Friday evening.
The utility is struggling to generate enough power to meet demand with aging infrastructure that regularly breaks down.
Tanzania To Generate 200MW From GeothermalSource: https://energynewsafrica.com
Libya’s Zueitina Port Receives First Oil Tanker After Lifting Force Majeure
Libya’s Zueitina port has received its first oil tanker after temporarily lifting force majeure last week to free up storage space.
While Libya’s National Oil Company (NOC) did not issue a statement, NOC sources told Libyan media that the Melos 21 oil tanker had docked at Zueitina for loading, after which it will sail to China.
Libya’ declared force majeure on Zueitina, along with its largest oil field, Al-Sharara, and the El Feel oilfield in mid-April amid anti-government protests over the way oil revenues are distributed.
On April 30th, the NOC issued an urgent statement warning that the situation at the Zueitina terminal was critical, calling for force majeure to be lifted for safety and to prevent excessive damage to storage system, which can leak when crude oil levels reach a certain level, noting that bottom of the tanks cannot bear the weight.
A day later, the NOC was given permission to temporarily resume operations at Zueitina, with two vessels reportedly allowed to load.
Libya is now losing some $60 million per day due to the production shutdowns, according to the country’s oil minister.
“Production has fallen by about 600,000 barrels a day,” half of the prior level, Oil Minister Mohammed Aoun told AFP last week. “Calculating the sale price at $100 a barrel, losses are at least $60m daily,” he said.
Since last week, things have been quiet on the political front in Libya, as the leaders and backers of two rival governments jockey for position behind the scenes both internally and with external power brokers.
Russia’s war on Ukraine has further muddied the waters.
Until recently, prime minister-designate Fathi Bashagha from the east seemed confident that he, backed by General Hafter of the Libya National Army (LNA), would be able to march into Tripoli and take over the government peacefully. Lately, however, he has been silent, as Haftar loses favor due to the support Russia affords him, along with the Wagner mercenary force fighting in both Libya and Ukraine.
Libya’s Oil Industry Faces Crisis Following The Ouster Of NOC ChairmanSource: Oilprice.com
Ghana: Diesel Prices Shoot Up To Gh¢11.45
The price of diesel has shot up at the pumps in the Republic of Ghana.
As of Friday, almost all the major oil marketing companies have adjusted the price of diesel at their various fuel outlets across the West African nation.
GOIL, the market leader, adjusted its pump price to Gh¢11.20 per litre while TotalEnergies adjusted its pump price to Gh¢11.30.
Star Oil Company adjusted its pump price to Gh¢11.45 per litre while Shell adjusted their pump price to Gh¢11.20.
Meanwhile, Benab is selling a litre of diesel at Gh¢10.80
The upward review of diesel prices is in response to the rising cost of the commodity on the global market.
Diesel price has been soaring as a result of the Russian invasion of Ukraine.
As of 5th May 2022, the price of diesel was sold at US$1,167 per metric tonne.
It was sold at US$1,212.63 previously.
Meanwhile, the petrol price remains the same at Gh¢9.35 pesewas per litre at most fuel stations.
Source: https://energynewsafrica.com
Ghana: ECG MD Steps Down On May 17
The Managing Director of the Electricity Company of Ghana (ECG), Kwame Agyeman-Budu is expected to step down by Tuesday, May 17, 2022, energynewsafrica.com can confirm.
Sources within the energy industry told this portal that the Board of ECG decided to let him step down because he has reached 60 years, the retirement age.
When reached via the telephone, Mr Agyeman-Budu confirmed he is exiting the power distribution company on May 17.
Mr Agyeman-Budu was appointed the Managing Director of ECG in November 2019 to replace Ing Samuel Boakye Appiah, who served three years as the MD.
Before his appointment, Mr Agyeman-Budu was Deputy Managing Director in charge of Corporate Services.
He brought on board over 28 years of experience in the energy industry.
Under his tenure, ECG constructed several substations and expanded its distribution network.
Also under his tenure, ECG ICT staff designed ‘ECG Power’ which makes it possible for 2.8 million out of the company’s 3.8 million customers to make payment for power purchased and services rendered by the company.
Source: https://energynewsafrica.com
Ghana: ECG Commences Deployment Of Prepaid Meters In Krobo District
Ghana’s southern power distribution company, ECG, in Tema Region has commenced the installation of smart meters (Pre-Payment Meters) in the Kroboland in the Eastern Region.
The smart meters installation exercise has started in Kpong and is expected to be rolled out in Odumase, Somanya and other towns in the Kroboland.
As of Wednesday, May 4, 2022, only 25 smart meters had been installed in both residential and non-residential areas.
The Tema Regional Manager of ECG, Ing Emmanuel Akinie, who revealed this during an engagement with stakeholders in Odumase-Krobo on Thursday, said they were doing the installation slowly so that “if there are problems, we will be able to identify them and resolve them.”
That said, Ing. Emmanuel Akinie noted they had so far not encountered any challenge since the beginning of the exercise.
According to him, the exercise went on smoothly.
“Some customers have purchased credit successfully,” he said.
Ing Akinie told the gathering that management had decided to wave the internal protocols whereby postpaid meter customers who are migrated onto the prepaid meters pay part of their outstanding debt anytime they purchase credit.
He said those who have purchased credit onto their prepaid in Kpong could attest to the fact that there were no deductions made to settle their outstanding debt when they purchased credit.
“ECG will not use the prepaid meters to manage the payment of a debt,” he assured the customers.
Touching on the four years of outstanding bills owed by residents, Ing Akinie said upon further engagement with stakeholders and the national security, management had extended the two years duration to five years to make it more flexible for them to pay.
The ECG also took advantage to educate the gathering about the importance of using prepaid meters.
Madam Puumaaiya Ruhiya Fuseini, Marketing Officer, Tema Region said with smart meters or prepaid meters, consumers could manage their electricity consumption.
According to her, with the use of prepaid meters, consumers would no more suffer disconnection as compared to the postpaid meters where consumers are disconnected from the grid for non-payment of bills.
“When you realise you’re consuming more power, you can decide to put some of your appliances like refrigerator and other things off for some hours or days to save cost,” she stated.
Nene Asada Author, PRO of Manya Krobo Traditional Council, who was the chairman of the occasion, urged residents of Kroboland to allow ECG to carry out the installation of the prepaid meters since it would be of help to them.
He, however, urged ECG to resolve any issue the residents may raise.
Source: https://energynewsafrica.com