Cut Power Supply To Gov�t � VRA Told

Utility service providers in the country have been asked to cut electricity and water supply to government offices for unpaid bills.

As the Volta River Authority (VRA) battles for a lifeline by way of tariff increases, it has emerged at the Public Accounts Committee sitting that the Government of Ghana owes the authority GH�250 million.

The revelation provided some talking points among the public as the members questioned the justification for the VRA�S recent demand for tariff increases in the light of such huge indebtedness on the part of the government.

�If I owe light bill, ECG would not hesitate to disconnect me,� this was the remark of an Accra resident, echoing the sentiments of most Ghanaians.

But a Deputy Minister of Energy, Emmanuel Armah Kofi Buah, told the committee that the government was not in a good financial position now, expressing the hope that a time would come when it would be able to pay all its debts.

Recently, Radio New Zealand International reported that electricity and water have been cut off in two Fiji Government office complexes in Suva and Tuvua because of unpaid bills. The power to the lift in the eight-story Suvavou House which accommodates the ministries of foreign affairs and finance was cut off recently after it was discovered that bills amounting to $240,000 were not paid because of confusion about whose responsibility it was.

The Chief Executive Officer of VRA, Kweku Awotwe, told Business Guide in Accra recently that efforts to cut power supply to schools, prison services and other government office complexes received fierce resistance.

�Most of them are even preventing ECG from replacing their post paid metres with the prepared ones,� he added, stating that �even request made by VRA to the Finance Ministry to include the distressed mines under the cross debt arrangement received no positive response.�

Meanwhile, the former Chairman of the Public Utilities and Regulatory Commission (PURC), Kwame Pianim has asked Ghanaians to support the proposed increases in utility tariffs to enable and quality service to the nation.

VRA is forecast to lose GH�570 million in 2010 at current tariff rates and crude oil prices. The monthly crude oil bill of the authority is estimated at $40 million while its current tariff rate is at GHp6 per kilowatt.

The renowned economist, said the unwillingness of consumers to pay realistic tariffs was gradually killing the utility companies, particularly VRA and the Electricity Company of Ghana.

Speaking at the second day of a two-day �Opportunities Conference 2010� organised by Forethought, he said policy makers would have to educate the public to appreciate the need for seemingly harsh but prudent policies to avoid the wanton demonstrations and bickering that tend to work against the implementation of good policies.

Ghana�s power suppliers, the Volta River Authority, Ghana Grid Company (GRIDCO) and the Electricity Company of Ghana are together demanding and justifying over 100 percent tariff increment to meet their current production cost.

Mr. Pianim said, �If we fail to tackle low tariffs situation now, we cannot avoid paying deficit in future.� He said tariff increases would discourage the misuse of power as is currently the case.

�It is better for one to get constant supply of power and determine how to use it than to pay low bills for poor services,� he argued.

Source: Business Guide/Ghana