Sierra Leone News:EDSA adds 15% GST to Electricity Tariffs

The Electricity Distribution and Supply Authority (EDSA) has added 15 percent Goods and Services Tax (GST) to electricity tariffs starting September 2016, Ambassador Henry Macauley, Minister of Energy said in a press conference in Freetown.
“The 15 percent GST is included in the tariff adjustment because that is an IMF [International Monetary Fund] conditionality. There is an IMF mission currently in Freetown that came a couple of days ago to review our performance under the IMF programme,” Ambassador Macauley said.

The country has about 160 megawatts installed capacity of electricity and about 50 megawatts come from the nation’s biggest source the Bumbuna Hydroelectric dam. There are thermal plants across the country as well that which serves Freetown and other provincial cities.
“We should have about 160 megawatts installed right now. When our planning unit did the planning for Sierra Leone, our planning unit ascertained Freetown can easily accommodate 200 megawatts,” the minister said. “Works are starting now to add more generation and because of the demand we added Aggreko and that is why we are seeking to add more plans.”

The National Power Authority (NPA) through a privatisation plan was divided into two state-owned companies. The Electricity Generation and Transmission Company (EGTC) is responsible to generate electricity and EDSA is responsible for distribution. EDSA buys electricity from EGTC and other independent power producers and sells to the public.
EDSA has a power purchase agreement with Aggreko for the provision of 20 megawatts to Freetown. This cost EDSA between $560,000 – $580,000 per month, he said. Aggreko is a 50 year old company operating in 200 locations across the world. There is also another independent power purchase agreement with US Diversify to provide electricity to the second city Bo.

“Bumbuna is today providing 50 megawatts. Deep in the dry season it will come down to 5 megawatts. That’s why Aggreko came,” the minister said.
The minister noted that there is a $50 million project, which is going to be funded by the British Department for International Development (DFID) and the African Development Bank to change all the transmission and distribution lines in Bo and Kenema and build a new 33 KV transmission line and provide additional generation.
“And that is in addition to government planned project for 10 district headquarter towns that include Bo and Kenema to install more generation,” he said.

Minister Macauley stated that EDSA is paying $125,000 per annum as rent for its new office space in Murray Town, West of the city following the fire accidents at Electricity House in central Freetown. The equivalent of the amount was paid to the landlord and tax deducted.  A total Le690 million was paid to the landlord and Le59.9m to the National Revenue Authority (NRA) as tax on the rent.
He disclosed that 50,000 solar lights will be distributed across the country.