GRIDCO has forecasted a revenue loss of 300 million Ghana Cedis this year as a result of the recent electricity tariff reduction announced by PURC.
According to PURC, Effective March 15, 2018, electricity tariffs are going down by10 to 30 percent.
CEO of Ghana Grid Company, GRIDCO, Jonathan Amoako-Baah, is worried the tariff reduction will negatively affect the company financially.
Jonathan Amoako-Baah is of the view that the 17 percent reduction in transmission service charge will adversely affect the 2018 revenue target of GRIDCO.
“Over the last few years, our company has been going through a period of austerity. As if that is not enough, the recent tariff announcement by the PURC resulted in a 17 percent reduction in our transmission service charge. This means revenue for 2018 will drop by the same percentage points or more,†he expressed.
Speaking at the 3rd Quadrennial Delegates Conference of the company in Kumasi, CEO of GRIDCO said the situation could further aggravate the company’s financial situation “if we do not introduce prudent measures that will include a reconsideration and review of some aspects of our budget for this yearâ€.
The conference was under the theme: “Promoting Occupational Safety and Health; The Quest for Building a Safety Cultureâ€.
Amoako-Baah noted that a company that fails to recognize safety as a corporate culture invariably runs a very expensive business operation and expenses as a result of accidents, deaths, loss of equipment and poor environmental housekeeping.
He added that a poor safety culture eventually leads to poor financial controls and service delivery.
“A company with a strong safety culture boosts its finances and service delivery and makes a lot of savings in revenue that would have gone into payment of workman’s compensation, repairing or buying new equipment and having a large number of staff reporting sick, among others as a result of poor health and safety practices.â€