The Volta River Authority (VRA) on Friday called on power consumers to brace up for economic tariffs necessary to avert the total breakdown of its operations that might result from a looming financial crisis.

Speaking at a media briefing, VRA Chief Executive, Dr Charles Wereko Brobby said the continuously low tariffs that it has had to operate with over the years has severely undermined its financial strength.

"Let's pay the right prices now instead of waiting for crisis to hit us before we hurry to pay a premium for emergency power generation."

Besides, the need to recover production cost, VRA also needs to urgently pay 70 million dollars external debt including 50 million dollars power imports from the Electricity Company of La Cote d'Ivoire.

The Ivorians have been on the neck of the VRA to redeem the debt and threatened to stop supply, Dr Wereko-Brobby said.

VRA also needs 180 million dollars to construct the second steam plant at Takoradi.

The briefing was to sensitise consumers on the frustrations of the Authority's current operational and financial position and also to outline its plans for the future.

It also touched on Hydro and Thermal power production, focusing on the lake level at Akosombo and the proposed Bui Dam, growth in demand and supply as well as other VRA's investment including the Fibre Optic Communication System.

Dr Wereko-Brobby said that while VRA imported power at 4.8 cents per kilo-watt (kwh) hour from La Cote d'Ivoire, the Public Utility Regulatory Commission only allows it to charge 2.7 cents per kwh.

Worst of all, the VRA gets only 194 cedis per kwh for power generated locally which it produces at a cost of 432 cedis per kwh.

He said unlike the situation before 1985 when the Authority was exporting 70 per cent of power and, therefore, had enough foreign exchange to run, domestic demand alone has now out-stripped total supply.

This has led to the dwindling of the company's foreign exchange reserves while it faced the challenge of sourcing financing complementary systems such as the Takoradi Thermal plant that were very expensive to run.

Ninety-five per cent of VRA's operations hinges on foreign exchange.