GHANA: ECG, GRIDCo at Loggerheads

According to the news portal Joy News, the Electricity Company of Ghana (ECG) and the Ghana Grid Company Limited (GRIDCo) are currently at loggerheads over the plan of GRIDCo to sell power directly to industrial customers at a cheaper tariff. The fracas between both state-owned energy utilities has been brought before Ghana’s Minister of Energy, Dr Matthew Opoku Prempeh.

It is alleged that the EGC owes GH¢1 billion in arrears to GRIDCo; this has prompted the latter to sell power directly to industrial customers. The GRIDCo is currently carrying out maintenance works on its network to improve the electricity supply in the country. As a result, Ghana has, in recent times, seen an increase in power cuts. The GRIDCo requires at least $350 million to complete all its projects.

GRIDCO, according to the report, has defended its move saying its actions are backed by the laws establishing the utility. On the other hand, ECG believes the GRIDCo is infringing on its license, which allows it to sell power to industrial customers.

However, the Minister of Energy has stated that the matter is being handled by the newly constituted governing board of GRIDCo. ”You have to examine the national transmission utility license granted GRIDCo and establish whether that license allows GRIDCo to sell to retailers,” Prempeh said.

”It is crucial because increasingly ECG is agitated that GRIDCo is stealing ECG customers and that partly is because of our tariff system which allows for industrial tariff and others which allows customers to run to GRIDCo for a cheaper rate and especially if you are an industrialist you want to get cheaper tariff so that must be looked at,” he added.

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