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Gov’t Reviews Electricity Tariffs Downwards In 2018 Budget


The government has reviewed electricity tariffs downwards in the 2018 budget and economic policy statement.

Average residential consumers are expected to witness a 13 per cent reduction in tariffs when government’s recommendation to the Public Utilities and Regulatory Commission (PURC) as per the law, is approved.

Similarly, non-residential consumers are also expected to witness a 13 per cent reduction same as special load tariff (low voltage) consumers.

High voltage consumers in mining companies are to witness a 21 per cent tariff reduction with special load tariff medium voltage getting 11 per cent, and special load tariff high voltage getting 14 per cent reduction respectively.

The Minister of Finance, Mr Ken Ofori Atta who made this known said the move was in fulfilment of the electoral promise made by President Nana Addo Dankwa Akufo-Addo.

Elaborating the Energy Sector Policy Initiatives in the budget presented to Parliament on Wednesday, Mr Ofori Atta said: “Mr Speaker, we have all too soon forgotten how the menace of ‘dumsor’ from 2012 to 2016 crippled the economy, it contributed to the lowest growth rate recorded in the past decade, the loss of jobs, reduced economic output and the loss of consumer and investor confidence in the economy.”

“Dumsor, Mr Speaker was also compounded by high electricity tariffs increasing the cost of doing business in the country.”

“Mr Speaker, during the 2016 election campaign, His Excellency the President, Nana Akufo-Addo promised Ghanaians that with prudent management of the economy, the NPP government will ensure that electricity tariffs are reduced.”

“In fulfillment of this promise, government has reviewed the tariff setting methodology and cost structure of power production. The review has resulted in recommendations that would be made to the PIRC [Public Utilities and Regulatory Commission] for consideration as per the law.

“In this regard, in 2018 efforts would be geared towards keeping the lights on at affordable rates to consumers particular industries and small businesses through reform and policy interventions over a two-“year period.”

The Finance Minister said the electricity tariff structure would be realigned with government’s developmental goals of industrial transformation, growth and job creation.

He said to give relief to the poor whose individual consumption actually falls in the subsidised lifeline category, but who lives in a compound house, the existing 4-tier tariff classification of residential consumers would be collapsed into lifeline and non-lifeline consumers in phases.

On the basis of these interventions, if government’s recommendation to PURC are accepted, he said consumers would be expected to benefit from reductions in electricity tariffs.

The expected average tariff reduction across various customer categories will be as follows:

  • Average reduction for residential 13 per cent
  • Average reduction for non-residential 13 per cent
  • Special load tariff low voltage 13 per cent
  • Special load tariff medium voltage 11 per cent
  • Special load tariff high voltage 14 per cent
  • Industry – High Voltage mines 21 per cent

Source: Graphic

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