
Audio By Carbonatix
Energy expert, Kwadwo Poku, says approach by the current and past governments to deal with the country’s energy challenges has been ad hoc at best.
Mr Poku believes a sure way to firmly solve critical issues debilitating the power sector – such as debts owed power producers and distributors, deficits in power generation among others – is for government to set up a committee tasked with finding long term solutions to the multi-faceted causes of the energy challenge Ghana is facing.
His comments on PM Express Tuesday evening are in reaction to the possibility of an intensified load shedding that may come if Nigeria Gas cuts gas supply to power producers in Ghana over government indebtedness.
According to Kwadwo Poku, the current government, for instance, has over the years been playing down the real threats to the country’s power situation, resulting in the present unplanned and an unstable power regime.
He said both government and power producer, Volta River Authority (VRA), failed to read between the lines when the energy crisis started.
“VRA and other institutions that are supposed to be in charge of our [power] infrastructure were not truthful in the beginning. [They] blamed [the power situation] on Akosombo being so low, [they] blamed it on our machines needing repairs, [government] blamed it a ship cutting the West Africa Gas Pipeline at some point, we blamed it on so many issues along the line and we have never really embraced the problem” he said on the current affairs programmed telecast on Joy News channel on Multi TV.
Nigeria on Monday threatened to cut gas supply to Ghana’s power plants over GHC100 million indebtedness. But government’s indebtedness to Nigeria Gas is just one of many in the power sector.
Government also owes both the VRA and power distributor, the Electricity Company of Ghana some $400 million -- being accrued cost of providing power to government Ministries, Departments and Agencies (MDAs). This according to VRA and ECG have stifled their ability to improve infrastructure.
However, these are not the only challenges government is grappling with in the power sector. Unstable, and sometimes scarce rainfall patterns have also worsened power generation at both the Aksombo and Bui hydroelectric dams.
Kwadwo Poku believes although the country’s power problems are numerous, a planned approach would yield success.

Host of PM Express, Malik Daabu
On the numerous debts government owes power producers, the energy expert says government can bond these debts on the domestic bourse, Ghana Stock Exchange.
“When [government] bonds that debt, it can now raise that 400 million dollars and give to it ECG and VRA, that bond can mature in 10 to 15 years,” he said.
He said if government wants the VRA and ECG to work efficiently, raising money on the domestic bourse to settle them would be the best option.
On Nigeria cutting gas supply to Ghana, Mr Poku is of the view that that would not happen.
He said good diplomatic relationship between Ghana and Nigeria as well as the good friendship between President Mahama and Nigeria President Muhamadu Buhari will save the day.
Another energy expert and a member of the Convention Peoples Party (CPP) believes the country’s power challenges is a vivid reflection of the poor economy.
Kwame jantuah said increasing inflation, the falling cedi and other indicators that point to the poor health of the economy have a direct bearing on the efficient power production.
He is suggesting that the current Petroleum Revenue Management Act be amended as soon as possible.
“The 70% of the oil revenue we put in the Consolidated Fund should be reversed to 30%. And the 40% should be put into a high interest account where we earn a good interest on it. So that when we have issues like these [debts], at least we can go into that account and pay for them,” he said.
He said plans by government to increase electricity tariffs to improve power infrastructure would be a wrong approach.
According to him increased tariffs should be consistent to increase in workers' salaries. Workers are still earning the same salaries, he notes, and hence it would be wrong for electricity tariffs to be hiked.
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