THE NEW LEGON OBSERVER Our perspectiv~ Com ing out of the ing out of the Energy Crisis Energy Crisis GHANA: THE ELECTRICITY CRISIS OF 2006 &. 2007 Why did it happen and who must be held responsible? Ato Ahwoi and Dr. Joe Oteng-Adjei • 3 00 Budgets Really Matter? Emmanuel Y. Ablo • B " Let there be ." Nana Akua Anyidoho • 11 What Young People Expect from The New Legon Observer Dr Yaw Perbi • 14 King Bruce: A Memorial Essay Vida Autu Vondee • 16 Letters to the Editor Akosombo Dam As we celebrate 50 years of The energy situation in Ghana has been of What was the cause of the latest crisis? Ghana 's Independence ... , significant concern to all in the last two Ghanaians have learned that there were 29 November, 2007 • 20 decades. Energy crisis and associated three major factors behind the problem: power rationing or load shedding were (1) technical difficulties with the Ghana 2008 African Cup first experienced in 1983. Since then, generating units at the Aboadze Thermal of Nations and the there have been several power·rationing Plant and other sources, including the Energy Crisis exercises as a result of difficult power Osagyefo power barge; Kwame Baah-Nuakoh • 21 • • generation conditions. The energy diffi- (2) unavailability of power from Cote culties have been most pronounced in the The Ghana Dictionary d1voire due to difficulties in their power Project last year, beginning in August 2006. system; (Corruption Revisited) Indeed the country experienced electricity (3) low levels of water in the Akosombo Ebow Daniel . 23 load shedding for more than a year. Aside Dam. This issue of The New Legan from the inconvenience that load Observer begins a discussion of the The Flagbearer Election shedding caused, it was quite embar· energy Situation in view of the wide­ season· 26 rassing for Ghanaians that this last crisis ranging impacts the recent experience occurred during the SOth independence had on Ghanaian livelihoods and life in anniversary celebrations. general. -+ 2 Indeed the recent energy crisis had adverse effects on Founding Members of the various categories of people. The economy in general Ghana Society for Development Dialogue was affected. The crisis had a significant effect on general price levels as businesses were forced to find Emmanuel Ablo Francis Dodoo alternative, higher priced sources of energy. This raised Ernest Aryeetey Djabanor Narh Alfred Teddy Konu Korantema Adi-Oako production costs Significantly, as reflected by the Gobind Nankani Adwoa Steel complaints of several Ghanaian industries. It is estimated William Steel Ivan Addae-Mensah that Ghana lost more than $lbillion dollars of foregone Kofi Anyidoho Ishmael Yamson output during the crisis. A number of companies were Clifford Nii Soi Tagoe Albert Osei reported to have folded up as their costs of production Ellen Bortei-Doku Aryeetey Joseph Atsu Ayee Kweku Appiah Charles Egan rose sharply, and productivity levels dropped . Isabella Quakyi Anthony Matthews Yaw Nsarkoh Tony Oteng-Gyasi There are no estimates yet of the number of workers who Helen Nankani Charles Jebuni lost their jobs in the process, and how this in turn Abena D. Oduro Raymond Atuguba affected the livelihoods of many households, but this is Ken Ofori-Atta Doris Ablo reckoned to be significant. The sector that was worst hit Angela Lamensdorf Ofori-Atta Yaw Saffu by the energy crisis was the manufacturing sector, including textiles and pharmaceuticals. The mining, con­ struction and hospitality industries were quite The New Legan Observer creates a platform for the discussion of broad development policy issues and significantly affected also. Indeed the mining companies matters of public interest. The articles are expected to be were the first to consider importing their own large power current and on relevant themes. It is owned by the generating equipment in order not to disrupt their Ghana Society for Development Dialogue (GSDD). operations. Households suffered from damaged appliances as a The society is a registered company limited by guarantee and is independent of the management of the University result of power surges, as well as from food poisoning of Ghana, Legan . The members of the society come from and the inconvenience of noisy and polluting generators. diverse professional backgrounds and are motivated Hospitals were quite hard hit by the crisis. Newspapers solely by the need to develop a vehicle for the articulation reported sordid stories of patients dying on operating of diverse but well-researched views on Ghana's tables as power supplies were interrupted. development. For many ordinary Ghanaians, it was inconceivable that this could be happening fifty years after independence. Editorial Board They certainly expected more and clearly deserved Chairman: Kofi Anyidoho better. Acting Editor: Ernest Aryeetey Editorial Consultant: Korantema Adi-Dako Economy: Charles Jebuni, Emma nuel Ablo, Abena Odure It is interesting that in the midst of the cnSIS, radio Politics: Yaw Saffu, Atsu Ayee stations became the place for arguments about who was Society, Culture & Education: Ellen Bortei-Doku Aryeetey, to blame. Government officials spent quite long periods Rev. Sam K. Adjepong and Kwesi Yankah defending themselves against attack and sometimes re­ Science and Technology: Ivan Addae-Mensah, Isabella Quakyi directed the blame elsewhere. Other politicians had a International Affairs: Gobind Nankani field day attacking government unceasingly for various acts of omission and commission leading to the crisis. Design Team The politics of identifying which group was responsible is Charles Tachie-Menson, Frederick Mante likely to continue for a long time. But at the same time All correspondence may be addressed to: the crisis led to a number of people and institutions The Acting Editor making useful suggestions about how such crisis can be New Legon Observer averted in future, probably by considering alternative P.O. Box LG 490 energy sources. Today, Ghanaians read more about Legan nuclear energy, solar energy, wind-powered generators, Tel . 512503 Ext. 109 Fax. 512504 bio-fuels, etc., than they did in the past. Many Ghanaians Email: [email protected] have become increasingly conscious of the need to · .... 3 2 nlng in order to they managed to survive it. avoid a similar Interesting research from Bank of situation in the near Ghana is used to supplement this future. Whi le the material. Ebow Daniel provides a planning is taking diversion from the energy problems place, The New with a satirical piece on corruption. .' Legon Observer is • providing an oppor­ The discussion continues in the next tunity for different two or three issues of the journal. Electricity Workers on pylons authors to express Essell Ben Hagan will provide us with their perspectives on why the crisis a very useful analysis of how proper develop energy saving approaches to occurred, how different people were handling of energy cou ld contribute to how they organize their lives, and this affected and how they coped with the economic growth. Ofosu Ahenkorah is quite Impressive. situation, what options remain for will provide very detailed information averting a future crisis. Ato Ahwoi and on what alternatives are available to In the wake of the crisis, government Joe Oteng-Adjei suggest that the Ghana, while Gobind Nankani appears quite committed to finding a crisis was caused by the current provides additional inSights into the solution to the technical problems. government's not paying enough hand ling of the energy question. As Thus in the 2008 budget, it has set attention to the problem early the African football fiesta approaches aside $70 million to indicate its enough. There are clearly other many Ghanaians would like to be commitment to a long-term solution viewpoints on th is matter, and we assured that energy will not prove a to the power crisis. would like readers to express their big embarrassment for Ghanaians, Quite clearly, some lessons must be opinions on the matter. Nana Akua and Kwame Baah-Nuakoh's article drawn from the bad experiences that Anyidoho discusses how Ghanaian which will also appear in one of the the nation has been through. All SOCiety, mainly hou seholds, were subsequent issues wi ll discuss this accept the need for longer term plan- affected by the energy crisis and how question. POLITICS GHANA: THE ELECTRICITY CRISIS OF 2006 & 2007 Why did it happen and who must be held responsible? Ato Ahwoi ' and Dr. Joe Oteng-Adjei 2 Introduction distribution facilities must possess Hydro Plants & Thermal Com­ Electricity has become a dominant the ability to carry the generated plementation factor in daily life, an essential input energy to the consumers. Whenever Ghana experienced its first officia l to industrial production and a major the generated energy does not meet load shedding in 1983 when as a form of energy. The utilization of the demand, a shortage is result of the very low inflows into the electrical energy in modern society is experienced. Several factors lead to Volta Lake, the elevation of the closely related to the quality of life. shortages of electric power. These Akosombo Lake reservo ir fell to As a result, the primary purpose of a factors can cause unplanned outages 236ft. That load shedding exercise modern power utility is to supply or power blackouts which may be lasted for about seven months. In electrical energy to consumers at the severe depending on the intensity of 1993, another load shedding lowest possible cost while main­ the factors . However, load programme had to be undertaken taining an acceptable level of service shedding refers to scheduled power due again to the low Akosombo Lake quality and continuity. outages to balance the demand for reservoir level. In 1998, the Volta electricity with the limited supply. River AuthOrity (VRA) and Electricity The demand for electricity must be Load shedding is usually and Company of Ghana (ECG) had to satisfied by the electriC generation must truly be a measure of last embark upon yet another load system, and the transmission and resort.