Source: citifmonline.com - 25.09. - The Electricity Company of Ghana (ECG) has defended its proposal for a 100% increase in tariffs.

This follows public uproar against the proposed tariff increments tabled by all the utility companies including the ECG.
The Electricity Company of Ghana wants the current tariff of 16 pesewas per unit to be increased to 35 pesewas while the Volta River Authority (VRA) has tabled an increase from 15 pesewas to 30 pesewas per unit.

The Ministry of Power has hinted it might back utility companies on the planned major tariff increments.

Minister of Power, Dr. Kwabena Donkor said government was ready to take tough decisions.

“We at the helm of affairs in the power sector have recognized that underlying the historic under-investment in generation, transmission and distribution has been the unattractive tariff regime,” he lamented.

According to him, Ghanaians have paid lower tariffs as compared to what is prevalent in the sub-region in the past because of the benefit of “Legacy Hydro, but “unfortunately, as demand expand by about 12% per annum, the role of legacy hydro diminishes and tariffs must now reflect the actual cost of service.” The Akosombo hydropower plants would only constitute 38% of VRA’s generation mix by December this year, and will represent less than 30% of the country’s generation mix.

“Let me assure investors in the sector both local and foreign that the tariff question is being addressed and that the State will not shy away from taking the tough decisions that need to be taken,” Dr. Donkor stressed.

Acting managing director of ECG, Robert Dwamena, justifying the need for the tariff increment said, 'we are working with PURC to get the necessary increases, we have submitted our proposal to them, but to have the confidence in the system we are ensuring we have a robust system so that when the load shedding exercise is over, ECG will have a robust system’.
 


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