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Energy think-tank ACEP advises Ghanaians to adjust to long period power cuts

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Street LightThe African Centre for Energy Policy (ACEP), an energy think-tank organisation, on Friday commended the disposition of President John Mahama towards the current energy problem, but said it was short of addressing the pertinent issues confronting the energy sector.

A statement signed by Mr John-Peter Amewu, Director of ACEP, copied to the GNA on Sunday, said the measures announced during the State of the Nation Address by President Mahama failed to address the current power sector crisis totally.

The ACEP, therefore, asked consumers, both industrial and residential, to adjust themselves to the long period of the potentially protracted power crisis.

The statement said the President’s measures sought to suggest that power generation was the main challenge of the energy sector, which would be solved with the expected additions in generation capacity from Takoradi 3 Thermal plant, Bui Dam and Asogli, when gas supply is restored by the West African Gas Pipeline (WAGPL).

ACEP envisaged the comfort margin would not be met for Asogli and Takoradi 3 since gas supply by WAGP to these plants had averaged 70 million metric standard cubic feet per day (mmscfd) less than the contracted requirement of 120 mmscfd.

The statement said it was certain that the Bui project would bring on stream some 400 MW by September to save the Akosombo Hydro Dam in distress. and noted that “the system plan of Akosombo is to supply 5,000 GWh annually, but continued to generate 7,000 GWh, which is almost 50 percent above its planned capacity.”

It noted that poor and inefficient distribution network posing as high as 30 per cent in distribution losses, among the globally highest, continued to undermine the financial viability of the power utilities.

The statement said distribution losses led to more than US$100 million in revenue losses to the ECG in 2010 alone, increasing its indebtedness to the VRA and Asogli.

It noted that “these challenges have increased the financial outlay of power generation from a more expensive light crude oil without appropriate revenues rendering the Tema 1 Thermal and the emergency power plants, which operate on diesel being left redundant in spite of the effects of the energy crisis.

“President’s address unfortunately failed to address the challenges of the poor distribution systems and financial difficulties of the power utilities.”

The statement acknowledged efforts by the Government to reduce transmission losses, but said once again these projects have been long standing and it is hoped that they would be completed soon.

It suggested short-term remedies should include government and the ECG redeeming its indebtedness to the VRA, which reportedly stood at $ 400 million, whilst consumers wait for WAGPI to restore gas supply.

The statement said government needed to support the ECG and NEDCO (Northern Electricity Development Company) to invest in the distribution networks to reduce the high technical distribution losses through the acquisition of sub-standard meters and transformers.

It called for the introduction of an index for customer satisfaction into the pricing formula and the reactivation of quality of service index, which had been abandoned for some time now.

The statement said to make tariffs reflect the true state of the power industry, ECG should be penalized for poor customer satisfaction.
Source: GNA
Former President Rawlings honoured in Congo
A former President of Ghana, Jerry John Rawlings, was last Wednesday honoured by the United Cities and Local Government of Africa (UCLGA), at a ceremony hosted by President Dennis Sassou Nguesso in Brazzaville, Congo.
This was contained in a press release issued by the office of the former President, copied to the Ghana News Agency on Sunday.
It said former President Rawlings and former President of Nigeria, Olusegun Obasanjo, were presented with Honorary Diplomas by Congolese President, Mr Ngueso, with a citation recognising their outstanding services rendered to the cause of decentralisation, the unity of local governments in Africa and to the United Cities and Local Governments of Africa.

The statement said former President Rawlings dedicated the honour to all those who had committed themselves to develop effective and truly representative local government authority on the African continent.

According to the statement, former President Rawlings advised that regional integration, a unified continent and globalisation could only work and be successful if they were augmented by a well-grounded local government structure with local authorities having important role to play in ensuring that their actions reflected the true desires and commitment of the people.

It said former President Rawlings also spoke on conflict of both ethnic and political origin facing Africa, which he said could be confronted with a more decentralised system of governance that offers true opportunities for all citizens to contribute their quota towards national decision-making.

The statement said former President Rawlings returned to Accra on Thursday, but left for South Korea on the same day to deliver a keynote address at the World Summit of the Universal Peace Federation, which takes place from February 22 to 25 in Seoul.

He will address the Summit on Africa and Middle East issues.

Source: GNA

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