Minority Skeptical about Reduction in Electricity Tariffs

Members of the Minority in Parliament are skeptical about government’s pledge to reduce electricity tariffs in the next budget scheduled to be read in November.

According to the Minority Spokesperson on Mines and Energy, Adams Mutawakilu, the expectation of gas coming on stream to power thermal plants as a means of driving down electricity cost for the ordinary Ghanaian would not materialize.

The Energy Ministry has hinted of plans to review taxes on electricity to cushion Ghanaians in the next budget.

“On the budget, it is our faithful expectation that we should be able to reduce tariff. We are getting a lot of corporation in so doing. So, we believe that through this budget to the end of the year, we should be able to start bringing the prices down,” Mr. Agyarko added.

But speaking to Citi News, Mutawakilu, who is also the Member of Parliament for Damango said government’s projections based on the Ivory Coast power generation and consumption model, is flawed hence the expected challenge.

“The fuel consumption in Ivory Coast is gas, so all other things being equal, tariff will be low. In Ghana we are using gas as far as light crude oil, sometimes heavy fuel oil and at times diesel. So it is a matter of principle he should have stated first. He should have stated that henceforth, from this day, we are no more going to use other fuel, we are going to use the principle of Ivory Coast where the thermal plants are being powered by gas which is less expensive and therefore they have low tariff.”

“If we implement it here, we are likely to have a decline in tariffs. But he spoke as if we are using the same fuel which is different. It is not the same. So we will wait when the budget comes, to see what they are going to do to reduce the tariffs, and based on that, we will be able to make meaningful and constructive contributions,” he added.

Source: Citifmonline