Prepare To Pay Higher Electricity Tariffs If� - VRA

The Volta River Authority (VRA) is cautioning Ghanaians to brace themselves to pay even higher electricity tariffs if the country moves into having more independent power producers (IPPs. The VRA which produces about 80 to 90 percent of the nation�s power is allowed to charge 11.49pesewas per megawatts for its power produced by the Public Utilities Regulatory Commission. Independent power producers on the other hand, producing only about 10 percent of the nation�s power charge between 30pesewas and 60pesewas per megawatts hour. VRA says even with recent tariff increment, the IPPs were the highest beneficiaries. Public Affairs Manager of the VRA, Samuel Fletcher told Citi Business News, the IPPs contribute little power to the national grid, yet drive the tariffs. He believes government�s policy of opening to IPPs could significantly drive tariffs high. �VRA produces 80 to 90 percent, so we get the lower tariff. So Ghanaians have a breathing space there. If in future, we get more IPPs, we need to understand that power will become more expensive. We need to get ready for that. This is because VRA is paying 11 cents because we have a mix of hydro and thermal. CENIT is getting 56 cents because it�s using a single cycle. Asogli is getting about 30 cents,� he explained.