Cut in electricity prices to cost GRIDCO GHC300m in revenue losses

The Ghana Grid Company (GRIDCO) has projected a revenue loss of 300 million Ghana Cedis this year as a result of the recent electricity tariff reduction announced by the Public Utility Regulatory Authority (PURC).

Chief Executive Officer of GRIDCO, Jonathan Amoako-Baah, is worried the tariff reduction will negatively affect the financial status of the company.

Effective March 15, 2018, electricity tariffs are going down by10 to 30 per cent, according to the PURC.

This comes on the back of government’s recommendation for a reduction in tariffs to lessen the burden of electricity prices on Ghanaians and businesses.

But CEO of GRIDCO, Jonathan Amoako-Baah, says the 17 per cent reduction in transmission service charge will adversely affect the 2018 revenue target of GRIDCO.

“Over the last few years, our company has been going through a period of austerity. As if that is not enough, the recent tariff announcement by the PURC resulted in a 17 per cent reduction in our transmission service charge. This means revenue for 2018 will drop by the same percentage points or more,” he expressed.

He said at the 3rd Quadrennial Delegates Conference of GRIDCO in Kumasi that the situation could further exacerbate the company’s financial situation “if we do not introduce prudent measures that will include a reconsideration and review of some aspects of our budget for this year”.

The conference was under the theme: “Promoting Occupational Safety and Health; The Quest for Building a Safety Culture”.

Mr. Amoako-Baah noted a company that fails to recognize safety as a corporate culture invariably runs a very expensive business operation and expenses as a result of accidents, deaths, loss of equipment and poor environmental housekeeping.

He added a poor safety culture eventually leads to poor financial controls and service delivery.

“A company with a strong safety culture boosts its finances and service delivery and makes a lot of savings in revenue that would have gone into payment of workman’s compensation, repairing or buying new equipment and having a large number of staff reporting sick, among others as a result of poor health and safety practices.

Secretary-General of the Trades Union Congress, Dr Anthony Yaw Baah, encouraged management of GRIDCO to do more in upholding the safety of workers.

GRIDCO Divisional Chairperson of TUC, Samuel Buer Ohime, mentioned health and safety among challenges confronting workers in the industry.

He therefore entreated management to build a safety culture.

GRIDCO became operational on August 1, 2008 as a result of the country’s power sector reforms.