Power cut to cost Mugher over 150mln birr in lost revenue

Power cut to cost Mugher over 150mln birr in lost revenue
01 June 2009

Mugher Cement Enterprise of Ethiopia is set to lose 150.3 million birr in lost revenue this month due to power cut, it was learnt.

Owing to the current power constraint, the Ethiopian Power and Electric Corporation (EEPCo) cut almost entirely power supply to Mugher since May 9 along with other 99 factories whose power consumption is high. The power cut is scheduled to last for a month.

Mugher is currently undertaking maintenance and related activities with the diminished power supply it currently gets, although its program to do so was scheduled for next month, according to Elias Kifle, the enterprise’s project manager.

The factory produces some 3000tpd of cement and sells its product for 167 birr per quintal before it temporarily ceased production due to the power cut, according to Elias.

Accordingly, the loses the stated amount of money in lost revenue from its stalled monthly production.

EEPCo has told the factories that it would partially lift the power cut in June and would eventually totally lift the shedding once the rains filled the hydro-power dams during the June-September rainy season. Yet, the representatives of the factories fear that they may go bankrupt if EEPCo’s schedule failed to materialize according to plan.

Source: Ethiopian Review

Published under Cement News