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Mon, 07 Dec 2009 Business & Finance

Businesses Face Power Outage

By Daily Guide
Dr. Boeh Ocansey-Director General of PEFDr. Boeh Ocansey-Director General of PEF

In the next six to 12 months, businesses as well as individual consumers will have to brace themselves for intermittent power outages, which started some months ago.

CITY & BUSINESS GUIDE had earlier reported that the uncontrollable power outages and the resultant load shedding exercise that hit the country in 2007 had started again.

Investigations by the paper revealed that the power outages were due to some technical hitches at Electricity Company of Ghana (ECG) and Ghana Grid Company (GRIDCO) sub-stations.

But the three companies, Volta River Authority (VRA), Electricity Company of Ghana (ECG) and GRIDCo last week officially announced that the intermittent power outages being experienced in the nation would continue for the next six months and beyond.

The three utility companies emphasized that the power outages were a manifestation of the problems in the power supply system, which were due to obsolete equipment.

The power outages would mean that businesses, especially manufacturing and mining companies, would have to buy extra fuel to run their entities.

This situation would increase the prices of items, culminating in an increase in inflation.

In 2007, a similar situation occurred as businesses operated at a high cost, forcing some to reduce their production.

Kwaku Awortwi, Chief Executive Officer of VRA noted that problems with the transmission of electricity would persist as long as the system remained obsolete.

“If you have a lot of weak links that have not been replaced for 40 years; what happens is that you will have many problems popping up at unexpected places.

“I think that is what the system faces today,” he said.

He revealed that a number of projects, which would fix the myriad of problems and eventually give the system a facelift, would start soon, stressing, “The facelift, which is the first major rehabilitation of the entire supply system, would take a number of years.”

ECG, VRA and GRIDCO urged electricity consumers in the country to bear with them over the next six months, adding that “the first phase of the project would be uncomfortable for them but would soon get better.”

At Weija, Mallam, Lapaz, Taifa, Madina, Adenta and other parts of Accra, power goes off at anytime of the day and returns after an eight-hour period.

By Charles Nixon Yeboah

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