The impulsive power supply being experienced country-wide is weighing down operations of businesses within the small and medium size enterprises (SMEs). Jessica Acheampong writes
Small and medium enterprises (SMEs) operating in the country are feeling the full brunt of the erratic power supply as they have to incur extra cost to ensure constant source of power.
This is because most of these SMEs want to remain in business, and has such resort to the use of generators to power their machines to efficiently and effectively run their businesses.
Power supply in the country in recent times has been described as very critical characterized by inadequate generation reserve margins, excessive transmission network constraints and poor voltage support during peak demands.
The phenomena which seems not to be ending anytime soon, will increase the cost of the operations of SMEs thereby passing on any additional cost to the consumer through high prices.
Information gathered by the GRAPHIC BUSINESS shows that businesses have slowed down especially with those in the processing industry as they have to work according to the unreliable schedule of the load shedding by the Electricity Company of Ghana.
The Managing Director of mSimps, Ms Mabel Simpson told the GRAPHIC BUSINESS that lights go off almost every other day without schedule and it lasts for long periods.
According to her, she records a high cost of production with regards to buying fuel for a generator she has acquired to ensure a constant supply of electricity for her operations.
“It also slows down production when you have to use machines that do not use electricity as compared to electric machines that makes work easier,” she said.
Responding on how she is footing the extra cost incurred with the use of the alternative power supply, she said “it is difficult to pass the cost onto consumers because as a business person who wants to retain clients, you cannot keep changing prices all the time.”
“The recent increase in fuel has made sales go down so you cannot also increase your prices, so as a producer you need to bear that cost,” she said.
She was however of the opinion that there was no justification for the Volta River Authority (VRA) to increase tariffs in the face of the current crises adding “it will collapse manufacturing companies because tariffs have been increased in the country before and nothing happened.”
Another local cereal processing company, Renny Foods being managed by Ms Irene Ofori Ghartey, also shared her frustrations with the GRAPHIC BUSINESS.
“It has really being affecting us. We have to postpone production because there is no light. If there is shortage of goods we have to mill, and because there is no light we cannot,” she said.
According to her, in spite of the load shedding schedule given by the Electricity Company of Ghana (ECG), lights go off unexpectedly.
“Apart from the load shedding, it sometimes goes off when you are not expecting it. We can have lights for 24 hours then it will go off for 12 hours,” she said.
She however explained that they do not work at night so even when the lights come on in the evening, it doesn’t mean anything for her business.
“Sometimes when the light comes on at night, workers will say they are not willing to work in the night,” she explained.
Ms Ghartey also said unlike the past where they were assured of constant supply of electricity during the day, the trend has changed. This therefore implies, less production adding, “sometimes it takes a whole week before we are able to mill one bag.”
She also hinted of price increments resulting from increase in process of raw materials as well as packaging materials.”
“Already since January, sales has gone down a bit and we are going to increase prices further increase will mean sales will go down further. That means if we are supposed to do production twice a month we will do it just once and that is going to affect us more,” she stressed. GB
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