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Government's new policy on energy cost
recovery
Koforidua, July 20, Ghanadot - At the end of a two-day
extra-ordinary executive committee meeting of the Union of
Producers, Transporters and Distributors of Electric Power
in Africa (UPDEA) at Akosombo, on Wednesday, Mr. Joseph Kofi
Adda, the Minister of Energy, unveiled a new policy of full
cost recovery of energy used in the country.
The focus of this new energy
policy approach, the Minister said, was to revamp the
agencies responsible for energy generation to ensure that
greater part of their resources were used on their core
businesses.
The Minster, however, said the problem at hand was how to
get along with all the stakeholders within the energy
sector.
The Minister said the Government
had, therefore, decided to set up a company to manage a new
400-megawatt hydro electricity facility. Employees of
the Volta River Authority could be asked to work within this
establishment.
Furthermore and in conjunction
with the government's new approach on energy production, he
said the Government had diversified the source of electric
power generation in the country, and would welcome private
participation in the energy sector.
The Minister said the Government
had signed various agreements to enable it to purchase power
from private organizations that might undertake electricity
generation from now on.
He urged all agencies involved in energy generation and
distribution to behave responsibly as the Government moved
towards the implementation of the new policy.
Relating to energy production on the continent in general,
Mr. Edward Njoroge, the first Vice-President of UPDEA,
observed that the current energy crisis in Ghana was not
unique to the country and that other African countries were
going through similar experiences.
He said the rapid economic development in African had
resulted in high demand for energy while poor energy
generation and distribution had led to a wide gab between
supply and demand for electricity.
Mr. Mutima Sakrini, the General Secretary of UPDEA, said
access to electricity in Africa was generally very poor and
worse in the rural areas, except for countries in North
Africa, which had about 98 per cent electricity coverage.
He stressed that access to electricity in the rural areas in
Sub-Saharan Africa ranged from three to 30 per cent except
South Africa, which had about 50 per cent coverage.
Mr. Sakrini noted that many African countries were
undergoing load shedding because of the inability of power
plants to generate enough energy due to unstable water level
as a result of climatic variations.
He suggested the establishment of interconnectivity at
sub-regional and continental levels for the pooling of
resources so that in times of difficulty, countries could
help each other.
Mr. Sakrini also advocated the diversification of sources of
energy, introduction of pragmatic measures and the
harmonization of plans for the generation and supply of
electricity within countries in the sub-region.
The Deputy Chief Executive of VRA, Mr Eric Yankah, said the
Authority was working to meet the energy needs of the
country.
Countries that participated in the meeting were; Nigeria,
Cameroon, South Africa, Angola, Zambia, Ethiopia, Mali and
Cote d' Ivoire.
Source GNA
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