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Company News from Saturday, April 13, 2019
Source: citinewsroom.com
2019-04-13
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The Northern Electricity Distribution Company (NEDCO) says obsolete equipment and alterations are to blame for the growing power outages that the northern sector has been facing in recent weeks.
"The obsolete hardware will require a lot of capital to replace in a day, so we do it on a case-by-case basis, but the end result is money," said Maxwell Kotoka, communications manager for NEDCo, in an interview with Citi News.
According to the company, which serves northern Ghana, non-payment of bills and illegal connections also deplete it and jeopardize its ability to effectively serve customers. The metropolis of Tamale has experienced intermittent power outages in recent weeks and NEDCo said the problem in the northern sector goes beyond the general problem of power supply nationwide.
Kotoka also noted the theft of electricity and other essential equipment, such as in early April, where copper cables on NEDCo-owned towers in the Berekum municipality in the Bono area were stolen.
"The bottom line is cash and, as we have said, if people do not pay for the power they use, if they steal it, you will not let us down. other choice than to continue to use the surplus material that will not give us optimal performance. "
"So it's important that everyone gets on board and has a very real conscience that tells you that stealing the company kills society."
MDA debt
NEDCo is already complaining of crippling financial difficulties due to a debt of 841 million GHc contracted by ministries, departments and agencies (MDA).
According to NEDCo's commercial director, Thompson Nagaleb, the government has done very little to clear the debts dating back to 2013.
These struggles informed NEDCo's earlier application of a nearly 40% increase in distribution costs.
The company has proposed a rate of 43 pesetas / kWh to enable it to generate sufficient revenue to meet the costs of production.
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