Power rationing imminent as GRIDCo reels under huge debt

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Ghana could soon face an erratic power supply if government fails to put in place measures to address the debt situation at Ghana Grid Co Limited (GRIDCo), policy think tank Institute of Energy Security (IES) has warned.

According to the IES, it is worrying that debts continue to pile up as a result of the inability of some state institutions to pay their bills to GRIDCo.

The Institute identified the Electricity Company of Ghana (ECG), Volta Aluminum Company Limited (VALCO), Volta River Authority (VRA), Great Consolidated Mines, Asogli Thermal Station, Ameri Power Plant, NEDCo, Bui Power Plant and Karpowership as companies who currently owe GRIDCo.

Executive Director of IES, Paa Kwasi Anamua Sakyi, has warned that the country could soon experience erratic power supply if government does not immediately resolve the debt situation at the power transmitting company. “GRIDCo is also reeling under pressure as a result so we are not surprised at the development,” he told Accra-based Joy FM.

According to him, “because of the inefficiency in the distribution network, we have power losses of more than 8% currently. So, there is the tendency that we if they are unable to get their equipment right and retool then, of course, there could be a nationwide blackout.”

“Knowing very well that GRIDCo has power challenges in terms of their outdated and inefficient distribution equipment, they will require enough funds to retool themselves and make their system of distribution more efficient,” he added.

Mr. Anamua Sakyi further called on the Energy Ministry to take immediate steps to resolve the situation or risk seeing the country go back to the days of power outages, locally known as ‘Dumsor’.

Information contained in GRIDCo’s statement of account put out in August indicates that the ECG alone owes an outstanding amount of ¢957 million, whiles VALCO also has a debt of ¢29 million. But whiles both companies have since been to make part payments, their debts still stand at ¢253 million at ¢2.5 million respectively.

Source: Yen.com.gh