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Energy Ministry cancels PEC contract for exposing electricity theft

Energy Ministry cancels PEC contract for exposing electricity theft

The Ministry of Energy is strongly moving to terminate the contract of PEC, a company that has recently exposed lots of electricity theft in the country.  The Sierra Leonean owned and managed company is supply quality meters to mostly business entities that have earned the Electricity Distribution and Supply Authority (EDSA) billions of Leones.  PEC, report says has a strong computer system that is constantly monitor the use of electricity supply in the country.  . (Photo:  Ambassador Henry Macauley, Sierra Leone’s Energy Minister)

 

In July this year, PEC successfully handed over a comprehensive report to the Ministry of Energy and EDSA, exposing some establishments that are stealing electricity supply in the country.  Some of the major entities named in the report are: the Auditing Firm KPMG, Ministry of Foreign Affairs, ECOBANK etc.  The company is said to have succeeded in raising the profile of EDSA.  In July this year, PEC collected Le1.2billion for the Electricity Supply Authority; and has continuously and consistently increasing revenue income since its inception

 

Report further states that the Office of the Chief of Staff has clearly stated that the report be looked into thoroughly by the Ministry and EDSA, and to be actions taken to forestall further recurrence.  As to why investigations and actions are yet to be taken against defaulters is something the Ministry of Energy would have to explain to the public.  What has however come out clearly is that some Authorities in the Ministry are pushing hard to terminate the contract of PEC so as to bring in an international company.

The decision, report states is coming at a time when the Board of EDSA is looking into issues that are creating setbacks in the electricity sector.

Another issue that the EDSA Board would have to look into is the contract between Aggreko power Generation Company, which is milking over $500, 000 on a monthly basis as capacity fee from EDSA.  Since the company entered Sierra Leone it is yet to produce a single megawatt out of the 20mw it agreed to produce.  EDSA, report say is paying for a service it is not benefited from since April this year.

EDSA’s Acting Commercial Manager, Mallay Bangura once told a news conference that they normally meet the cost for distribution of electricity such as buying conductors and transformers for adequate electricity supply.  He said it is imperative of any government to provide electricity supply to its people.  He assured that they will provide sustainable electricity to those who can afford the service, because, as he put it “electricity is now a right and not a privilege”.  He admonished customers, especially post-paid customers to pay their bills so that EDSA in turn supply them with the required electricity.

Report states that EDSA is spending over billions of Leones every month to pay Independent Power Producers (IPPs) like EGTC, AGGREKO, and a company that supplies power in Bo; and also meets its administrative and other costs.

Many people interviewed are of the view that the capacity charge to Aggreko should have been used to boost the capacity of EGTC, which does not charge a cent for capacity.

By Contact Tracer

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