Do not raise electricity rates, Healthlife pleads for manufacturers

Company News of Thursday, January 24, 2019

Source: Graphic.com.gh

2019-01-24

Pharmacist Kofi Nsiah-Poku, pharmacist Kofi Nsiah-Poku, general manager of the local beverage manufacturer Healthilife, has proposed that the government and the Public Utilities Regulatory Commission (PURC) reconsider the expected rise in tariffs for the first time. electricity as a result of the takeover of the Ghana Electricity Company. ) from Meralco.

Although manufacturing companies currently pay lower rates than residential users, Nsiah-Poku said the amount paid remains high and any additional increases would affect their operating costs and reduce gains to date. .

The CEO expressed it during an interview with GRAPHIC BUSINESS.

The Millennium Development Authority (MiDA) recently announced that the Meralco consortium would formally resume the GEC as of 1 February, in accordance with the Power Compact II agreement.

This decision sparked various concerns within the minority in Parliament, which also predicts an increase of about 60% in electricity tariffs. The Utilities Regulatory Commission, however, dismissed the charges, saying the takeover would not dramatically increase electricity rates.

Pharm. Nsiah-Poku, however, noted that any increase, whether astronomical or not, would have serious repercussions on the activities of the manufacturers.

"Domestic users may be paying more, but if there is an increase, it means we are also going to pay more. Even at the current level, it's still expensive, but we're getting by, so if we increase it again, it will reduce our earnings, "he said.

"When prices are increased, it becomes very difficult for us to make consumers understand because even at current prices, they have trouble buying products. So we want the government to look at the issue, "he added.

1D1F application
Mr. Nsiah-Poku also said that the company had asked to participate in the government initiative "a district to a factory" (1D1F) to acquire a plant to transform the abundant watermelons of the country, l & # 39; coconut water and soybeans in finished products. PET bottles at affordable prices.

"In the region of Ada, for example, there are a lot of watermelons going bad, so we thought about using them, so we decided to be part of the 1D1F initiative to turn it into finished products, "he said.

He said this would help create jobs and increase government revenue.

"So we applied and the process is under way and hope it will be approved soon. Once we have obtained approval and a bank will finance it, we will deploy it. "

We are also committed to increasing our use of soy grown in the northern regions by bringing about 10,000 young graduates into a sustainable soybean crop.

"The 1D1F initiative is good and we should all help make it work," he added.

Make Ghana a manufacturing center in West Africa
The general manager also noted that the country could become a production center for West Africa and therefore called on the government to put in place policies that would attract local businesses to establish factories. in Ghana.

He said that the provision of public services in Ghana was better than in other countries and therefore called for the need to capitalize on it to make the country a manufacturing center.

Performance 2018
"By acting the company's performance for 2018, he said that this year was not a good year as the purchasing power of consumers continued to dwindle.

"We have done our best to set up the factory, but when people do not have the power to buy, it becomes a problem. We can deliver but we have to buy it when we do it, "he said.

"People simply do not have the money. Purchasing power has declined due to rising unemployment and all businesses are complaining. There should be more money in the system so that people can use it to buy what we produce, "he added.

Way forward
On the way forward, he said the company was planning to expand its operations in the African region after making important progress in Nigeria.

"We want to increase our revenues in 2019 and we try to do this by expanding into other countries and introducing new products. We will soon be launching our coconut water product, an energy drink that could be used to treat cholera, as well as other products that are useful in the market, "he said.

"We also want to expand our business in Nigeria. We have made a lot of progress but we want to do more. Calls have even been made for us to set up a factory there, but we want to take care of the Ghanaian market first, "he added.