Dumsor: Now No Timetable

Ghanaians who expect a load shedding timetable from the Ghana Grid Company (GRIDCo) and the Electricity Company of Ghana (ECG) to enable them plan their life will have to wait until the 225MW power barge starts generating power.

This is because information gathered by The Finder indicates that generating shortfalls have become so erratic that companies generating power cannot assure GRIDCo and ECG of the megawatts to be supplied consistently.

An official of ECG who did not want to be named told The Finder that GRIDCo and ECG can only produce a timetable when the situation normalises.

The country is grappling with a shortfall of between 500 and 600 megawatts (MW) in power generation.

Although the country is already undergoing load shedding, the situation has worsened since last month when the N-Gas of Nigeria reduced gas supplied through the West African Gas Pipeline Project from 120 million standard cubic feet of gas per day to an average of 35 million standard cubic feet of gas per day.

Ever since this happened, dumsor has become so unpredictable that it is difficult for people to plan their lives.

Severity of dumsor

For most parts of Accra, ECG supplies power for 12 hours and puts off the power for 24 hours.

There are many other areas where consumers enjoy power for just two hours and endure power cut for over 36 hours.

PURC

The Finder could not reach the Public Utilities Regulatory Commission (PURC) to find out why there is no timetable for the worsening power crisis.

An official of ECG said the erratic power supply being experienced by consumers in recent times was mainly due to generation challenges.

Nigeria’s N-Gas supplies an average of 35 million standard cubic feet of gas a day and it is being used by Sunon Asogli Power Plant to generate about 300 megawatts from its combine cycle.

Currently, four thermal plants in the Tema Power Enclave, with the capacity to generate over 340 megawatts, have been shut down because of lack of fuel to power the plants.

The plants are Tema Thermal Power Plant (TT1), with capacity for 110 megawatts; the 50-megawatt Tema Thermal Power Plant (TT2); 100-megawatt Cenit Power Plant; and Mines Reserve Plant, with the capacity to generate 80 megawatts.

Apart from the 50-megawatt Tema Thermal Power Plant (TT2), which uses only gas, all the others are dual fuel that uses either gas or LCO.

If N-Gas supplies the 120 million standard cubic feet of gas a day as contained in the contract, it would be enough to power all the plants in the Tema Power Enclave.

Even though N-Gas claimed it has problems at its production site, power sector sources suspect that may not be the truth.

Sources told The Finder that ever since Ghana reached an agreement to pay N-Gas the balance of $171.5 million between November 2015 and February next year, gas supply from N-Gas averages 35 million standard cubic feet a day.

They noted that in the agreement with Ghana to pay the outstanding debt, N-Gas demanded that full payment be made for fresh gas to be supplied while the outstanding debt is cleared.

However, the Volta River Authority (VRA), which owed banks to the tune of over $1.3 billion, has not been able to make full payment for the fresh gas supplied, and sources believe it is for this reason that N-Gas is unwilling to increase supply.

For example, gas supplied for September 2015 amounted to $18 million, but VRA was able to pay $12 million, leaving a balance of $6 million.

Available power generation are: Akosombo - 520 megawatts; Takoradi Thermal Plants - 600 megawatts; Sunon Asogli Power Plant - 300 megawatts; and Bui Dam - 100 megawatts.

Bui Dam comes on-stream during peak hours to augment what is produced.

N-Gas issued VRA a deadline up to ending of February 2016 to clear its outstanding debt of $171.5 million.

In October, VRA paid $9.5 million out of the $181 million debt for gas supplied from August 2014 to August 2015.

This means the balance to be paid is $171.5 million.

The $171.5 million is to be paid in three tranches from this month to ending of February 2016.

The debt covers gas supplied to VRA and the cost of supply and transportation of the gas from Nigeria to Ghana.

As of July this year, VRA owed banks to the tune of over $1.3 billion, and it will be very difficult for VRA to secure a loan from any bank in Ghana to pay its debt to N-Gas.

This means the Government of Ghana, which is the 100% owner of VRA, will have to look for money to bail out VRA to ensure that N-Gas does not cut supply to Ghana.

Ghana gets about 25% of power through gas from Nigeria, which flows through the West African Gas Pipeline via Benin and Togo, and the threat by N-Gas to reduce volumes by 70% would have raised the cost of supply.

VRA’s power generation problems are a sign of the budgetary stress facing Ghana, a country that is following an International Monetary Fund programme to restore fiscal balance.