Energy, as we are all aware, is critical to our existence. We need energy not only to cook and light our homes and workplaces but also power machinery in industries and factories, as well as vehicles and tractors on the farm.
Indeed, lack of access to adequate, affordable, reliable, safe and environmentally friendly energy is a severe constraint to development. It is, therefore, very disturbing if there is a clear signal of a major energy challenge in the country, since it can have far-reaching political, social and economic implications for our development.
Once again, the energy needs of the country have come into sharp focus as the country’s capacity to generate energy for industrial, commercial and domestic use is under severe constraint.
According to the Volta River Authority (VRA), the situation had largely come about as a result of the failure of mining companies, industries, ministries, departments and agencies (MDAs) to pay the huge sums of money they owed the authority.
Ghana is, therefore, confronted with serious deficiencies in energy supply and this is a very disturbing piece of news which requires immediate solution if the country is to overcome its energy challenges.
The VRA stated, among other issues, that it had been compelled to sell power cheaper than its production cost, for which reason what it obtained from loyal customers who paid their bills regularly was not enough to sustain its operations. It said the situation had plunged the authority into a critical financial situation.
In short, the VRA is not allowed to charge the right tariffs. Furthermore, subsidies are also not paid on time. There are also the problems of illegal connections, obsolete equipment and the failure of state institutions to pay their bills.
All these challenges require a concerted approach in order to resolve them.
Any inefficient management of utilities, short-sightedness and corruption which are depriving Ghana of the energy supplies needed to fuel the growth process must be nipped in the bud by all stakeholders.
While we await the resources that will come from the oil find, the government must be bold enough to raise the needed funds for the VRA to replace obsolete equipment and bring in enough crude oil.
The Daily Graphic also urges the government to step up efforts towards more private participation in the generation of energy. In many cases, the needed investment to rejuvenate the energy sector is beyond the financial capacity of the domestic economy.
Ghana has, over the years, relied on hydro power, without any effort being made to explore other forms of energy for both domestic and industrial use. The VRA, the National Grid Company (GRIDCO) and the Electricity Company of Ghana (ECG) must do something about the situation to avert another energy crisis.
We also think the government must explore alternative sources of energy from wind and solar.
Access to regular and reliable energy is a key factor for promoting social progress and economic growth, both of which are closely linked to sustainable poverty reduction.
It is time to take steps to avert another energy crisis, but it will be important for all stakeholders — the government, consumers, utility companies and investors — to be prepared to pay more for power to keep the system in operation.
Also, the utility companies have an obligation to end the wastage caused by illegal connections and inadequate supervision by officials.
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