Ghacem, Ghana’s largest cement producer, is calling on the government to introduce the Automatic Tariff Adjustment sooner rather than later, rather than continue with the latest bout of tariff hikes.
The recent rise in power tariffs has cost Ghacem an additional US$ 25 million, which puts pressure on operating costs in an environment where the company is already facing stiff competition from importers of bagged cement.
Dr George Dawson-Ahmoah, Ghacem’s Strategy and Corporate Affairs Director, told press that the company expects utility providers to increase tariffs, ‘but the issue is the provision of reliable power supply, access to power at an affordable price’, he said. He added that though the company is not against competition, he feels it should be on a level playing field. Importers of bagged cement do not have to allow for the high cost of power in Ghana and so have an advantage over domestic producers.
The Automatic Tariff Adjustment is intended to ensure that utility companies charge appropriate tariffs in order to support the operations of local companies. The Deputy Finance Minister told press that the government is working to ‘cushion’ the impact of turbulence in the energy sector on industry.
Edited from various sources by Katherine Gu
Read the article online at: https://www.worldcement.com/africa-middle-east/29102013/ghacem_calls_for_intervention_on_tariff_hikes_350/