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Power challenges pose threat to re-booting economy – IES

The Institute for Energy Security (IES) says the recent power challenges pose a threat to the re-booting economy.

In a statement, it said even though the issue of power outages is never a new thing to the Ghanaian economy, the current power challenges require a swift intervention.

“Aside the power outages affecting health service delivery, it may definitely affect negatively on economic activities in the service and industrial sectors. The years between 2013 and 2016 have proven to Ghanaians that there are serious socio-economic impacts of power outages, whether planned or unplanned”, it emphasized.

It urged government to ensure that the cash-flow constraints which makes it difficult for the power transmitter GRIDCo, and the distributors to improve on their networks, is swiftly addressed.

“After all, it is in government’s own interest to ensure efficiency in power delivery, as it stands as the driving force for the economic recovery”, the statement pointed out.

The 2021 Budget statement makes an indication for the need to increase the growth rate of the economy by harnessing the potential of industries.

IES said the power crisis as it has become, casts doubt on the ability of government to meet the anticipated growth in the economy.

Until the current power incidents recorded cease, the Ghanaian economy may struggle to come out of the recession caused by the pandemic.”

IES advised the government to be guided by the events of 2014–2016, and how it affected the Ghanaian economy, adding “if government is serious with rebooting the economy, then it must ensure that the utilities within the power value chain are resourced financially, to ensure operational efficiencies in power delivery”.

It concluded saying “reliable and consistent power supply of course is essential for particularly developing economies at such a moment. It is more vital to modernizing agriculture, increasing trade, saving lives, improving transportation, empowering women, expanding industries serving as building blocks for escaping death, poverty, and enriching lives.”

ACEP hints of increase in electricity tariff

The African Center for Energy Policy (ACEP) hinted on Monday that electricity tariff will go up drastically soon.

Its Executive Director, Ben Boakye said “there is no debate about that. This is a major tariff review year, so PURC I can imagine the difficult situation they may be in, where the grid is not stable and yet you have to review the tariff”.

It’s going to be a very tough decision for PURC to take. I can guarantee that tariff would go up significantly. If it doesn’t go up then the government has to raise money, but I didn’t see it in the budget”, he further said.

Source:Joybusiness

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