I have heard people talk about their businesses hitting the rocks year on year due to the high cost of operations. From high taxes to the high cost of utilities and the never-ending saga from regulators. If a business will survive in Ghana, the owners must take a keen interest in minimizing their operational costs as far as electricity is concerned.
As of the end of December 2021, the cost of electricity in Ghana was hovering around 0.369 cedis per kWh for households and 0.796 cedis kWh for businesses. Without paying attention to these numbers, it is difficult to sustain a successful business. Hence, it is significant to know what these numbers and their implications mean for business owners in simple terms. How can a business owner cut down on electricity costs without compromising output?
Many have introduced energy-saving equipment purporting to cut down power usage while regulators such as the Energy Commission have put in place serious sanctions on the use of faulty or ineffective equipment which tends to draw a lot more power.
Understanding The Energy Sector
Before I talk about the best way to optimize electricity, I would like you to understand how the sector works in Ghana. There are six (6) of the 127 megawatts turbines which are managed by the Volta River Authority (VRA). The main sources of power are thermal, and hydroelectricity and this sector is mainly regulated by the government with some private sector participation.
The Way Forward for Electricity
Thermal and solar energy production is the future of Ghana’s power generation. Though costly, for businesses, this is the most cost-effective way to keep operations running during difficult times.
Consider solar systems, for example, a firm will require batteries, which have an average life cycle of three years, charge controllers, panels, and an inverter.
This equipment requires a minimum of quarterly maintenance and is dependent on the act of nature to give optimal output. Many people will not tell you the whole truth because it is also their business model to keep afloat.
There have been conversations on the role of unregulated mining activities in the country is causing. One should not lose sight of the danger that is being posed to the citizens. The hardest to be hit is the hydroelectricity generation sector because of their dependence on water and if these activities of the unregulated miners are not clamped down on, we will be heading to the days of power crisis again.
Get The Best Out of Electricity
Now, giving all this knowledge that has been acquired from electricity, I would like to take this opportunity to run you briefly through how you can optimize your business profitability whiles cutting electricity costs to a minimum of 25% in the first year.
This is a tried and tested method across several industries such as Banking, Telecommunications, and Supermarkets just to mention a few. To get the best out of electricity consumed, businesses need to take note of these 3 simple yet important things.
There is more to do in other to achieve the needed results of an average of 52% in 3 years whether or not there is an increase in tariffs.
Conclusion
Optimizing electricity use is every business owner’s responsibility and not just the technical assistant. First, consider how much money you are regularly allowing to go to waste. It’s like the accountant failing to file their tax returns leading to the liabilities of the business becoming weightier than projected and consequently going to jail for this conduct.
Directors, managers, officers, and every other member of a company should not be sheltered from performing their part in enabling the business to flourish. The success of the business depends on all!
The writer, Eddie Cudjoe, is a Managing Partner with AirbanHomes, a Real Estate and Property Management company in Ghana. He is based in Accra, Ghana, and works in the firm’s corporate office. He advises several entities and businesses on power management issues, property acquisition, raising funds as first-time homeowners, and project management. Eddie also works with Fidelity Bank Ghana, Properties & Facilities Management. Contact him at info@myairbanhomes.com or 030 298 4032