General News of Thursday, 25 April 2002

Source:  

Power Outages Are Inveitable - ECG Board Chairman

Prof. George Hagan, chairman of the board of Electricity Company of Ghana (ECG), says power outages cannot be ruled out in the efficient distribution of electricity.

The measure follows the drop in water level of the Volta Lake, which is affecting supply.

"We are in the lean season and supply is going to be far less than demand," hence the option of power outages.

Prof. Hagan announced ECG's harsh stand in distributing electricity in Kumasi during an encounter with the media.

He said the situation is so serious that ECG might not have to inform the public about the outages.

Hagan said even though ECG is struggling to satisfy the consumer, it would do everything to deliver efficiently and as much as possible at a cheaper rate.

According to him, ECG would now want to put on a human face in dealing with consumers by being considerate with the payment of bills through instalments.

He urged consumers to be patriotic and settle their bills to help the company create wealth and deliver.

The board chairman commended the government for the support in the payment of bills to enable ECG operate effectively.

The realities of the situation at ECG, Prof. Hagan said, are that there are inefficiencies, which needed to be addressed.

Hagan said the consumer would have to be responsible to enable ECG make necessary efforts to deliver towards realizing the objectives of the policy of Golden Age of Business (GAB).

Prof. Hagan admitted that there is evidence of massive corruption at ECG.

As a measure to control the canker, the board has decided that tendering, pricing and invoicing should be transparent.

The board chairman cautioned that any ECG staff found guilty of malfeasance would be dealt with according to the dictates of the law.

Currently, the board is studying a forensic report on ECG. He assured that while the board is serving as a watchdog to stop corruption, it will also consider chalking successes through the judicious use of resources.

Board chairman Hagan lamented the power loss through tempering with metres, use of wrong bulbs and the use of power beyond voltage.

He said ECG was working to cut down on losses but that this cannot be done without the co-operation of the consumer.

The Managing Director of ECG, Mr. Fred Asante, announced that the company requires $30 million a year to keep the system from collapsing.

For the next 10 years ECG will need $407 million for a number of projects, including replacement of some obsolete machinery and overloading in the system.

Asante said ECG's loss level stood at 35% with technical losses accounting for 12% while non-technical losses arising from illegal connections and billing errors stand at 13%.

He added that 10% goes into commercial loses.

According to Asante, the company needs a lot of investment to reduce such losses even if it were a loss reduction of only 1 %.

In a related development, Asante, speaking at a public forum in Kumasi, has attributed the numerous power outages in various parts of the country to the fact that most of their electrical equipment and materials are old and weak, reports Brenda Osei Akoto.

Asante urged the consumers to pay their bills regularly to enhance the efficient operation of the company.

He called for the co-operation of consumers to enable the company deliver.

"Your co-operation in this direction would help us to serve our genuine customers properly," he added.

The board chairman of ECG, Prof. George Hagan, stressed the need for more dams to be constructed to ensure proper generation of electricity in the country.