A GNA Feature of By Lawrence Quartey,
Accra, Oct. 20, GNA - By early next year consumers of electricity would no longer enjoy subsidized power supply. They will pay for the full cost of energy services, the Public Utility Regulatory Commission (PURC) has indicated.
This measure is said to be inevitable and was explained that, the move would be a gradual increase in tariffs from now onwards until early next year, probably by the end of March 2007.
The bottom line is that: 'If the supply and distribution of energy services in the country is to be sustained in an efficient, equitable and fair manner for all and sundry, then Ghanaians must pay the right price for energy.
Until this become an acceptable fact and Ghanaians learn to adjust to the situation, the problem of frequent power interruptions and outages would have to continue to be with them. Re-emphasizing the issue, energy experts at a stakeholders' workshop at Akosombo in September 2005 on the draft national energy policy, candidly and unanimously stated that paying the right price for energy should be the ideal way forward to solving the country's perennial energy crisis.
They argued that the role of the private sector in the provision of electricity was crucial, but that could only happen when consumers were prepared to pay the right price for energy. This argument was made supported with a detailed comparative analysis of electricity tariffs in neighbouring Sub-Regional countries such as Togo, Nigeria and Cote d'Ivoire.
The beef of this article is not to kick against the concept of full cost recovery of energy but to caution that such a move calls for nothing but a commensuration of an efficient provision of utility services on the part of both producers and distributors of energy. The only way out would be for consumers of electricity to start thinking energy so as to pay less at all times. Yes! Thinking energy could save more than one could imagine, energy experts have advised. Participants at the workshop at Akosombo, who were drawn from the Energy Commission, National Petroleum Authority, The Volta River Authority, the Electricity Company of Ghana, Bulk Oil and Storage Tanks, Tema Oil Refinery, Public Utility Regulatory Commission (PURC) and Civil Society Groups such as the Ghana Consumers Associations were of the consensus that the time had come for consumers to pay for real cost. Speaking on: "Energy and the Private Sector", Mr Kwame Pianim, an Economist and Chairman of the PURC, said: "Ghana has run out of excuses. We have to move now but the only obstacle facing us is business as usual.
"A major problem facing us as a nation is that those who know the truth and the right thing to do do not talk whereas those who do not know do the talking."
He blamed technocrats saying: "Our technocrats have to be truthful to the politicians and take full responsibility for their actions. We need men of courage and integrity to man our public sectors because we want to develop."
According to him "phrases such as "pro-poor and lifeline" dovetailed in government policies, especially towards the provision of energy services were not helping the nation to develop.
Mr Pianim explained that such policies meant to cushion the poor, were rather detrimental because they did not promote efficiency and as a result could not ensure sustainable provision of energy for the country. But opponents of this position would see this as socially unfriendly to the poor in society and an ill-egalitarian policy.
Pinning down his argument, Mr Pianim amidst applause from the workshop participants said: "We always say enhancing electricity to the poor that is what had always killed us. How many people have access to electricity and why should we always talk about lifeline because somebody from Europe says that we should look after the poor? "The only way the poor can have access to energy is to expand energy resources, usage and provision of infrastructure. This can be possible when people pay the right price.
"After 50 years of independence we have enough human resources to run our own energy sector but we should bear in mind that we don't need to do this with donor resources. We have to rely on private sector money," he said and once again attracted more applause.
But what does government policy say on the matter? As indicated earlier, the Government has assured PURC that in six months time, full-cost recovery could be implemented. Government considers the energy sector as a key plank in Ghana's economic development policy. The future of the energy sector, the experts say, is bright if the current strategies enumerated in the draft policy expected to come into force before the end of December 2006 were pursued with the attention it deserves.
Expressing candid opinions, the participants praised Ghana's current Energy Minister, Mr Joseph Adda, who is also an economist by profession as one with the brain and tenacity to see the vision of the sector encapsulated in the draft policy come into fruition.
Dwelling on the draft policy Mr Adda, under whose capacity the policy was being developed, said the energy sector is projected to grow by 35 per cent by 2015, which would require institutional reforms in power generation, transmission, distribution and financing.
The aim he said was to achieve increase access to electricity from 45 per cent to 58 per cent through increase financing for electricity infrastructure development that would ensure adequate supply and improved quality of service of power to meet national requirement. The Electricity Company of Ghana (ECG) was currently implementing a programme that is replacing all credit meters with prepaid meters in the country starting with the Accra Metropolis. The aim is to ensure efficient revenue collection, reliable service and efficient consumption of energy by customers.
Even though it would ensure efficient consumption of power because the service is now being paid for before use, some have argued that many especially the low-income earners would find it difficult to afford. Besides, critics of ECG that GNA spoke to said the Company's inefficient service delivery had little to do with charging the full cost. They said the inefficiency was largely due to poor management, inefficient methods of tariff collection that had created loopholes in the system.
Learning to acquire the habits to conserve energy, which experts say is cheap, is therefore the ideal thing for everyone - domestic, commercial or industrial consumer.
Believe it or not - "Waste Not, Want Not". If all households in Ghana turn off one light for one hour a day, we would save enough money to deliver Ghana from its "seemingly" economic woes, and also save her from borrowing excessively. Again, if all households turn their heating down by 10 degrees Celsius, the country would save enough funds to provide more hospitals, clinics and schools as well as pay the staff of these professionals well.
Besides, if every house turns its TV off overnight instead of leaving them on standby, we would save enough carbon dioxide that could fill the Accra Sports Stadium 1,000 times every year. It could save the environment and reduce your fuel bills. These are not imaginary propositions but local and international energy experts have asserted to.
The questions that we should begin asking ourselves as we think energy are: How energy efficient is the appliances in our homes? Almost everyone now is calling for the right price of energy to be paid as the way forward. Again the question is: Are we heeding to the global warning? We groan at the cost of our gas and electricity bills. But how far do we take the simplest step to improve the situation?
The environment is affected by the way we live, and the gasses emitted into the atmosphere as a result of our ever-increasing desire to have more and do less.
Sharing tips on energy conservation with the Ghana News Agency (GNA), Ms Abla Fiajoe, Director of Corporate Affairs, Volta River Authority said: "The typical Ghanaian expects hot water, heat, and light at the flick of switch and he demands machines that wash his clothes and dishes, vacuum his floors and keep his food fresh or frozen. But lots of little things can make a major impact on the energy resources we gobble up daily.'
Saving energy, she said needn't involve a huge amount of efforts on our part. It's simply a matter of remembering to make a few easy changes that will add up to making a big difference in the over all amount of energy we consume.
As an international energy expert put it: "They are easy habit to get into. That's why saving energy doesn't have to be a hassle and it doesn't have to cost one anything. In fact it will save us money. I mean lots of money. Even more importantly it will make a real and lasting difference to our environment."
Ghana's energy problems, for that matter what has become known in common parlance as the "Load Shedding" exercise did not start today. Seven years ago the country was hit with the same problem. The economic consequences could not be underestimated.
It has now become an intermittent phenomenon and the reason remains the same, the Akosombo Dam has depleted below the minimum level because the rains were not enough. Who is to be blamed? Is it nature? Load shedding is now a reality.
Nonetheless, in the mist of all these and as we journey through the 21st century with all its attendants fast changing technologies, our homes are becoming more dependent on electrical appliances each more powerful than the last, but yet little knowledge on energy conservation is being acquired.
The country's main source of energy supply is hydro, about 60 per cent of total power needed. Renewable energy sources such as wind and solar are still not well harnessed. Some efforts have been made on solar energy though but more could be done.
The sun has been the earth's only source of energy for millions of years, because without the sun the earth would be just as desolate as Pluto so people have tried and more are trying to manipulate the sun's power.
Solar panels are becoming more common whether it is just to recharge garden lights or run a whole house. Even space stations can use the power of the sun to their advantage.
The non-renewable sources such as coal, gas, and oil that are used frequently are unfortunately decreasing and would eventually run out as population grows and energy demand increases. 20 Oct. 06
