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20.08.2019 Business & Finance

Relocation of Karpowership, Likely To Influence a Reduction In Electricity Tariffs Dr Manteaw

By Shella Morcher
Relocation of Karpowership, Likely To Influence a Reduction In Electricity Tariffs Dr Manteaw

Renowned energy expert, Dr Steve Manteaw is optimistic of a positive tariff review that would reflect in a significant reduction of electricity tariff with the relocation of the Karpowership to the Western enclave.

The Powership birthed at the Sekondi Naval base to prepare for its fuel connection to the Ghana Gas – Karpowership pipeline, yesterday, 15th August.

This move, as resonated among experts, would amount to huge savings for the country and as well as improve energy production and efficiency.

Taking cognizance of the relatively cheaper means of powering the Karpowership with gas to crude, Dr Manteaw is convinced the savings would translate into a reduction of the cost of energy production.

Dr. Steve Manteaw stated “it will help in the sense that, in the next review of electricity tariffs, there wouldn’t be any increase; I would even expect that there be reductions because there is going to be savings on the fuel. And when there is savings on the fuel, granted that the companies are efficient, and are able to prevent revenue loses at their level, it should translate into tariff reduction for consumers.”

Dr Manteaw shot down hopes of job opportunities for persons in the Western Region from the Karpowership, stressing that the facility has an able team which might be conveyed along it to the western enclave to work on it.

“I had the opportunity of visiting that plant when it was still in Turkey, it is not a plant that takes so much people. So in terms of job creation, I wouldn’t want to expect that we can count so much on them.

"I also want to believe that it is coming with the workers who were manning it in Tema, so there wouldn’t be any direct job creation as a result of the relocation.

"But what will help is that once there is cost savings that translate into a reduction in tariff that will make power affordable, people can take advantage to increase their production capacity because the cost of power is a key component in determining the profitability of those companies,” he stated.

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