GRIDCo makes giant strides in revenue generation
Accra, The Ghana Grid Company Limited (GRIDCo), a company mandated to dispatch and transmit electric energy to wholesale suppliers, in 2016 made a net profit of GH?69.132 million compared to GH?44.797 million in 2015 representing 54 per cent increment.
The Company generated a total of GH?673.835 million in revenues in 2016 as against GH?472.345 in 2015 and, thus, transmitted 13,699,893,722.23 KWh volumes of power to its customers.
It was also adjudged the Best Transmission Company in the West African Sub-region in 2015 and 2016.
Mr Jonathan Amoako-Baah, the Chief Executive Officer (CEO) of GRIDCo, said this at the Company’s Eight Annual General Meeting in Accra on Friday to take stock of the year under-review and strategise for the way forward.
He said the success chalked so far demonstrated the Company’s determination to observe excellence as one of its core values and would strive to be consistent and outstanding in all its endeavours.
Mr Amoako-Baah said despite the Company’s impressive profit margin, its financial position was severely impacted by the huge indebtedness of two of its major customers-the Electricity Company of Ghana (ECG) and the Volta Aluminum Company (VALCo) that owed GH?540,396,706.37 and GH?30,728,205.78 respectively.
He gave the assurance that management would pursue the defaulting customers to recover the monies, adding that austerity measures introduced by the Company to manage the liquidity challenges were aimed at ensuring judicious use of funds for effective and efficient running of the firm.
Ambassador Kabral Blay-Amihere, the Board Chairman of GRIDCo, said electricity remained a critical aspect of the country’s development efforts.
Therefore the role of GRIDCo as the System Operator and sole Transmission Utility is crucial for the expansion of the country’s economy, he said.
He said the board would continue to direct the affairs of the Company to maximize its resources in order to achieve its objectives.
Ambassador Blay-Amihere said the Board would continue to seek the support of government and all the stakeholders to resolve the financial crisis currently facing the company.
He expressed optimism that government would roll out plans to assist the energy sector, particularly the minimisation of the indebtedness of companies wholly-owned by the Government and injection of capital to aid the achievement of power sector objectives.
Mr Joseph Cudjoe, a Deputy Minister of Energy, urged the board and management of GRIDCo to ensure resilient, reliable, efficient and cost-effective transmission system.
We should see transmission and power environment with a sense of business because there is money to be made there so GRIDCo revenue sources, transmission charges and telecommunications would boost revenues, he said.
The Deputy Minister said when the transmission lines at Bolga and Ouagadougou were completed they would increase the Company’s revenues because more electric power would be transmitted to customers outside the country, which would rake-in more revenue to the GRIDCo.
He said government had good plans of enhancing the capacity of GRIDCo as outlined in the 2018 Budget Statement, therefore it would work to create more transmission systems to prevent the recurrence of the power crisis, saying; We must work on the generating, transmission and distribution levels”.
Mr Cudjoe said government was implementing a liquidity policy of ensuring fair sharing of proceeds that came through power distribution and was taking medium and long term solvency in the energy sector.
He said the energy bond that was issued this year raked-in GH?4.7 billion, which would help ECG and other defaulting companies to pay off their debts.
GRIDCo undertakes economic dispatch and transmission of electricity from wholesale suppliers (power generating companies) to bulk customers such as the Electricity Company of Ghana and Northern Electricity Distribution Company and the mines.
The power transmission firm was established in accordance with the Energy Commission Act, 1997 (Act 541) and incorporated on December 15, 2006 as a private limited company.
GRIDCo started operations on August 1, 2008 following the transfer of the Volta River Authority’s transmission assets to it.
Source: Ghana News Agency