VRA blames huge debt profile on low power tariffs

Source: B&FT - The Volta River Authority (VRA) has stated that it is wallowing in debt owing to the unstable nature of the local currency.

Mr. Joseph Adoko, Principal Financial Analyst of VRA stated this at a Public Utility Regulatory Commission (PURC) forum held in Kumasi, which saw the Electricity Company of Ghana (ECG), Ghana Grid Company Limited (GRIDCO) and the Ghana Water Company Limited (GWCL) educate consumers on a proposed upward adjustment of power in Ghana

Mr. Adoko said the VRA goes for loans to generate power and yet it sells the power at lower prices, thus making it being indebted to its creditors.

He was emphatic that GH?0.15p per unit charge of power was not helping VRA at all and that the downward trend of the Akosombo water is also a contributing factor to the erratic power supply (Dum-so, Dum-so) against the fact that GRIDCO is also calling for an upward adjustment from 0.40 to 0.50 per unit.

In all, the power generators are asking for tariff adjustment from 44 pesewas to GHc1.00 representing more than 100 percent increase. 

The VRA official further indicated that the power producing outfit has called on the PURC to adjust the current cost of power from 0.15 p/kw to 40 p/kw, a development which has left consumers aggrieved over the poor quality of power produced for Ghanaians.

According to Mr. Adoko, the strength of the currency the VRA changes to purchase crude has gone down, owing to the state of the economy, compelling them borrow at high interest rates. Nana Yaw Bannieh, a representative from GWCL, told the forum that they are running at a loss owing to the current price of water.

He, however, appealed to PURC to accept their proposal, which is from GHc1.78 to GHc4.00.