Ghana 
Energy prices to hit the sky in Ghana

afrol News, 25 April - The long awaited energy crisis in Ghana is starting to materialise. The Volta River Authority (VRA), the major source of Ghana's power, is waiting for an authorisation to raise prices by 150 percent. Underproduction, electricity wasting and under-pricing are considered the main reasons. Concerned about the expected price hike, Ghanaians are talking about energy saving.

Last week, it was known that the VRA had requested permission by the Ghanaian Public Utility Regulatory Commission to raise energy prices by 150 percent. Currently, the VRA sells a unit of electricity at cedi 194 (0.03 euro) to the Electricity Company of Ghana, which in turn sells to the consumer, according to the 'Ghanaian Chronicle'. The VRA asks for permission to sell its units at cedi 473 (0.07 euro) from now on, and Ghanaians expect they therefore will get permission to rise prices to the double. 

The VRA has maintained for a long time that Ghanaian power consumers have been paying unrealistic rates, thus indebting the company. Neighbouring Côte d'Ivoire earlier this year even has been threatening to cut off supply because of VRA's inability to pay deliveries. 

Albert Kan-Dapaah, Ghanaian Minister of Energy, already in February warned of an emerging energy crisis, mentioning that authorities even might "have to resort to power rationing." Consumption of subsidised power was slowly creeping higher than production, a trend further accentuated by the poor rainfall last year, negatively affecting the country's hydroelectric power stations.

Following a severe energy crisis in 1997/1998, Ghana started to expand and diversify its energy sources, lowering its dependence on rainfed power. Ghana is urging for the completion of the proposed West African Gas Pipeline, where it would be the main recipient of gas from Nigeria, transported to markets in Benin, Togo, Ghana and Côte d'Ivoire. The pipeline is envisaged to become operational in 2006. 

The VRA price hike thus comes in a situation where power supply is below consumption, power imports are difficult due to accumulated debt and privatisation of power and water suppliers are being discussed. Surprisingly, it is noted without outcry in Ghanaian media, understanding VRA's situation. 

Furthermore, the discussion about energy saving has emerged in Ghanaian media, expecting a power price hike. The daily 'Accra Mail' today with interest quotes Vice President Aliu Mahama, who launched a national campaign to provide information for the adoption of energy efficiency measures and technologies to eliminate the 30 per cent of electricity wasted by consumers.

- Let me emphasise that energy conservation is a win, win situation for all, Mahama told 'Accra Mail'. "The consumer wins in reduced electricity bills and the government and utilities win in the form of deferred or avoided investment in additional supply capacity. Efficient use of energy in industry results in enhancing the competitiveness of Ghanaian industries in this era of globalisation." 

The discussion is at its mare beginning, but indicates that the current energy crisis might have its positive, long-term side effects.

Sources: Based on Ghanaian media and afrol archives

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