Business News of Tuesday, 9 April 2013
Source: Joy Online
Government says plans to end the load shedding are on course despite a World Bank report which indicates the crisis would not end any time soon.
According to the Bank the current tariff levels are too low and are therefore unattractive to investors who will bring in the needed capacity to increase generation. The report said until the disparity between production and billing rates is resolved, the energy crisis would persist.
However, government thinks otherwise. Head of Communications at the Energy Ministry, Edward Bawa tells Joy News the fears are unfounded.
“I think we would want to differ from” the Bank’s claims, he said, and assured that the government has its own plan to finance energy generation in the country.
He said the government has been able to sustain some level of generation over the years, adding that about 532 megawatts of power would even be added this year. He said inasmuch as government would ensure that the utility providers get enough revenues to reinvest in order to breakeven, consumers would not also be overburdened with high cost of energy possible of “squeezing out businesses”.