[ 2016-05-24 ]

Akufo-Addo calls for immediate reduction on electricity tariffs
The 2016 New Patriotic Party (NPP) Presidential
candidate Nana Akufo-Addo has called for an
immediate reduction of electricity tariffs
following reports that the consumer is being
ripped off.

He argues that taxes make up a large part of the
19.28 US cents/kilowatt hour the consumer pays in
Ghana. Ghana's neighbour, Cote d'Ivoire charges 9
US cents/kilowatt hour.

His call comes following revelations that more
than 62% of Complaints received by the Public
Utilities Regulatory Commission in the first
quarter of 2016 were on overbilling as compared to
the previous year (18%).

Customer Billing Data shows clearly that the
Electricity Company of Ghana (ECG) has challenges
with migrating customer information from the old
Billing System to the new Billing
System(Software).

The PURC has since ordered that ECG suspends the
use of the troublesome software. But Nana Addo
Dankwa Akufo-Addo has observed that the large
problem of consumers is the tariffs being paid for
power.

The PURC increased electricity tariff by 59.2 %
for residential consumers effective December 14,
2015.

The Commission pointed out to 10 factors
necessitating the increase. Although no direct
mention was made of taxes, the PURC said that one
of the factors was the "economic development of
the country".

Government however announced a reduction in
electricity tariff after a "difficult and
tortuous" round of negotiation with Labour.

Electricity tariff was reduced by 15%, a slash
from 59% to 45%. It applied only to consumers
using 50kwh or less, also termed lifeline
consumers.

According to Akufo-Addo, the NDC government's
"insatiable apetite for taxes" is at the heart of
the problems consumers face with power supply.



Below is the full statement from Akufo-Addo

I have taken notice of today’s statement made by
the PURC that the Electricity Company of Ghana
(ECG) should suspend its billing system. I think
the matter is more fundamental and should go
further than that.

If you look at the rates we are charging,
industry, as well as domestic users, for
electricity in Ghana, compared, for instance, to
Cote d’Ivoire, already, it puts our enterprises
in a very uncompetitive comparison.

In Ghana, my understanding is that the tariff for
commercial users is 32 US cents/kilowatt hour. The
Ivorian equivalent is 13 US cents/kilowatt hour.
Again, for domestic users, we are talking about
19.28 US cents/kilowatt hour, when Cote d’Ivoire
equivalent is a tariff of 9 US cents/kilowatt
hour. So, you put these things together, and,
already, Ghanaian industry and economic activity
are suffering unnecessarily.

A large part of it is due to the taxes, the
insatiable appetite of the Mahama government for
taxes – 10% energy levy which is charged for
both domestic and commercial uses; a service
charge of GH¢7 flat rate for every consumer and a
VAT of 17½% for commercial users.

I believe all of these figures can be
significantly reduced to be able to bring the
electricity tariff system in our country to a much
more competitive relationship with that of our
neighbours and what is going on in the region. It
is important for us to recognize in Ghana that,
whatever we are doing, we are doing so in a
globally competitive context, and if we don’t
recognize that, many of the decisions we make
about the management of our economy are going to
put us at a disadvantage from the get go.

I am saying it is absolutely imperative and urgent
that the public authorities find a way to reduce
electricity tariffs in our country immediately and
do so now.

Source - Myjoyonline.com

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