Northern Sector Dominates Power Sector Losses with Tamale in the Lead – Energy Minister
Ghana's power sector is beset by a huge financial loss, particularly in the north, with Northern Electricity Distribution Company (NEDCo) experiencing sky-rocketing levels of power theft and revenue shortages. Tamale, the capital of the Northern Region, has been the bed for these problems, with criminal electricity connections and non-payment of bills taking a toll drastically on the viability of the sector.
Alarming Financial Losses
NEDCo, which supplies power to the five northern areas, that is Upper East, Upper West, Northern, North East, and Savannah, has reported that it loses over GH¢8.5 million monthly in Tamale alone through illegal power connections. That is approximately 45% of the power supplied within the region, a case that attests to the gravity of the issue.
Elvis Demuyakor, Northern Area Manager of NEDCo, revealed that bill payments have been withheld by customers for more than two years now, resulting in more than a 50% loss in NEDCo revenue. He warned that if the illegality persists, one day NEDCo would collapse.
Operational Challenges and Safety Concerns
The mass illegal disconnections have not only over-stretched NEDCo's capacity but also introduced significant safety risks to its workers. Workers have been attacked in the process of disconnection, leading to the temporary shutdown of services in certain places. Senior Staff Association Chairman William Asare emphasized the danger members of staff are exposed to, highlighting the fact that police escorts are chased off by residents, which incites illegal operations.
Besides physical intimidation, NEDCo has also experienced interference from influential players, including politicians and community elders, complicating the recovery of lost revenue. Demuyakor indicated that such interference undermines the power of the company and hampers legal action against offenders.
Government and Community Interventions
Knowing the gravity of the situation, the Energy Minister has resorted to local leaders, including the Yaa Naa, to assist in the battle against power theft. The project aims to replace old meters and increase efficiency in the region. The Yaa Naa warned the public against attacks on NEDCo staff and illegal connections and appealed for community support.
Besides, the Parliamentary Select Committee on Mines and Energy plans to hold a stakeholder meeting in Tamale to address the current issues at hand. Committee member Edward Bawa asserted that citizens need to pay for electricity in order to continue powering the region.
Broader Consequences for the Energy Sector in Ghana
The Tamale difficulties are a reflection of a larger crisis in the energy market of Ghana. The Energy Minister, John Abdulai Jinapor, has referred to a monthly power sector deficit of approximately $70 million and pinned it on inefficiencies and revenue collection. He talked about the need for reforms like maximizing operating efficiency and the role of private sector participation in energy distribution.
Additionally, the Public Utilities Regulatory Commission (PURC) has agreed to an undertaking with NEDCo to resolve operational issues such as illegal connection, meter thievery, and vandalism of infrastructure. PURC has mandated NEDCo to take actions to reduce loss and improve collection of revenue.
Conclusion
The case in Tamale underscores the need for coordinated effort by government authorities, electricity utilities, and local communities to stem power theft and promote the sustainability of Ghana's power sector. Inaction risks exposing the economic viability of power distribution in the northern sectors to danger, and by extension the economic stability of the country at large.
blogpay
Northern Sector Dominates Power Sector Losses with Tamale in the Lead – Energy Minister
Total Comments: 0