Imani Warns of Dumsor Recurrence


 IMANI Africa has said behind-the-scene events in the power sector are pointing to a likely return of intermittent power cuts popularly referred to as Dumsor.

A brief analysis by IMANI Africa’s energy desk suggests that high energy debts could be the main cause of possible return to dumsor. 

“The fundamentals of the energy sector looks weak, particularly the power sector is just a time bomb waiting to explode. 

“High energy sector debt continues to place constraints on the sector's ability to innovate and reduce end-user tariffs for consumers,” the think tank said. 

It adds that “rising debt levels can be attributed to the unplanned procurement of emergency power, political interference in regulatory bodies, high technical and commercial losses, unaccounted revenues, collection rate, and other administrative challenges.” 

The think tank notes in the analysis that total government debt owed Independent Power Producers (IPPs) represents approximately 31% of the total energy sector debt and as a result, the Chamber of Independent Power Producers has notified GRIDCo and other power utilities of its planned shutdown until government clears 80percent of its total debt owed.

Source: Ghanaweb


Comments

Popular posts from this blog

Shatta Wale’s cocaine addiction is getting out of hand – Afia Schwarzenegger alleges

Akufo-Addo sworn in as Ghana’s President for second term.

Director of research at the Presidency, Victor Newman dead