Energy Minister, Dr. Mathew Opoku Prempeh
Energy Minister Dr. Matthew Opoku Prempeh has reaffirmed the government's resolve to save the Northern Electricity Distribution Company (NEDCo) from collapse.
According to him, during the launch of the Revenue Protection Task Force, revenue leakages and unfavourable tariff regimes posed threats to the survival of the company.
"If NEDCo were selling maize, every month, it buys and transports 100 bags of maize to Tamale but is only able to account for 52 bags; in spite of this, it has to continue to go and buy another 100 bags in the next month. Clearly, Ndana, if this is not checked, sooner than later, we would not have any NEDCo in the area and by extension, there will be no national grid; I am very sure that that is the last thing we would wish for even our worst enemies," Dr Opoku Prempeh said at the palace of the Overlord of Dagbon Yaa Naa Abdulai Andani.
Under the instruction of the Energy Ministry, the management of NEDCO is taking steps to plug revenue shortfalls, including the deployment of smart pre-payment meters, which are less prone to manipulation and power theft.
He noted that the predicament of NEDCO has been "further worsened by the current tariff regime which sells electricity to NEDCo at 50.28 GHp/kWh but enjoins them to sell the same energy to lifeline customers at 41.91 GHp/kWh. What aggravates their woes is that, of the 82.46% of their customers who are residential, as much as 46.81% are lifeline customers so their losses amass even before they start selling the power".
While bemoaning the challenges being faced by NEDCO, the Energy Minister disclosed that a similar task force under the directive of the Ministry of Energy, the Electricity Company of Ghana, has made some significant loss recoveries.
He prevailed upon the Overlord to lend support to the task force to carry out its mandate in the area.
"Your Majesty, by this singular act, it is our humble view that you would be demonstrating the highest traditional support possible for this drive to ensure the sustainability of electricity distribution in the north. Ndana, furthermore, may I ask humbly, that as the Overlord of Dagbon, to whom we all defer, you kindly consider making a public statement in support of the mass installation of the pre-payment meters," he added.
