The Effect of Electricity Load Management on the Operations of Small and Medium Enterprises: A Case Study of La-Nkwantanang Madina Municipality

Abstract

Ghana has been experiencing frequent power cuts over the last ten years.  The need to expand and diversify its generation capacity in order to improve supply security is key for development. This study explored the effects of electricity load management on the operation of small-scale enterprises, and examined the effectiveness of these enterprises’ coping mechanisms. A cross–sectional survey design was adopted as well as the mixed approach research design. A total of 152 small scale traders were sampled from Madina in La-Nkwantanang Municipality in the Greater Accra Region. The study depicted that the recent load management is having adverse effect on the profitability of many SMEs owing to the coping mechanism measures such as retrenchment of workers, working at night, reduction in workers’ salaries and use of generators they have adopted to lessen the impact of the frequent load management reported less effectiveness in resolving the challenges posed by load management. This paper advocate that, government should invest in solar energy to be a substitute power supply to the country during the dry season where there is constant sunlight which obviously will also reduce pressure on electricity plants. Broken and unbroken but old plants can be fixed or replaced by VRA and ECG to enable them work effectively as well as explore other energy technologies such as the thermal energy and the wind energy to restore constant power supply.

Keywords: electricity load management, small and medium enterprises

DOI: 10.7176/RJFA/10-2-08