The announment was made by President Nana Akufo-Addo, but Mr. Mutawakilu contends that “announcing the reduction when PURC hasn’t even done the major tariff review is taking over the work of PURC.”

[contextly_sidebar id=”cmje5mne9lbH9xDQjjYasTt72vxzxZIk”]”Government doesn’t direct PURC. Government gives input to PURC. That is why it [PURC] is independent, and I have continued to warn that they are treating PURC as an agency or department under the Ministry of Energy,” he said on Eyewitness News.

Before this assertion, Mr. Mutawakilu had claimed that proposals had not been made to the PURC to reduce electricity tariffs, as captured in the 2018 budget.

But responding to the claims, the Energy Minister, Boakye Agyarko, said there were documents available to prove the proposal for reduction was sent as far back as November 2017.

Mutawakilu’s claims baseless

Also speaking on Eyewitness News, the Spokesperson for the Energy Ministry, Nana Damoah, said the Minority MP was only trying to smear the President.

“The President is not saying that he as President has unilaterally taken a decision to review prices, so I wonder what Mr. Adams Mutawakilu is talking about. There is absolutely no basis whatsoever for him to be attempting to make the claims he is making.”

According to Mr. Damoah, the President would not have made the announcement without “knowing the state of all of these processes and procedures.

He also reminded that it was clear in the budget statement that these were proposals and according to him, the PURC acknowledged receipt of proposals and “kicked into gear its own processes.”

“The president has done nothing but reinstate that point that was made in the budget of 2018 that was read in November 2017,” Mr. Damoah said.

The government announced that it had recommended the review of electricity tariffs in the country to the PURC.

It said it is hoping for an average reduction of 13 percent in electricity tariffs for residential consumers, whilst it is targeting a 21 percent drop for industrial consumers.

Reducing electricity tariffs was a major promise of the New Patriotic Party (NPP) ahead of the 2016 elections.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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These proposals were meant to seek a revision of the tariff setting methodology and cost structure for power production.

[contextly_sidebar id=”ELH0OYfLj6K0EITmGb8rEqvhUWs1LZrO”]Responding to the claims at a meeting of Ghanaian CEOs, the Energy Minister, Boakye Agyarko, said there were documents available to prove the proposal for reduction was sent as far back as November 2017.

Mr. Agyarko also chided Mr. Mutawakilu for making assumptions on the matter, and said the MP could have simply pushed for him to be summoned to Parliament to provide clarity.

“The Ministry sent a proposal to the PURC on the 17th of November, and he is welcome to see copies of these matters. Indeed, it is within his power as the ranking member to summon me to the Mines and Energy Committee [of Parliament] for such a verification.”

“…We have submitted our proposal and I can say that without the fear of contradiction, because I know that is what the truth is. The PURC responded to the proposals we have sent, and he is welcome to see copies of these because he is an officer of Parliament and an officer of State,” the Minister said.

The government announced that it had recommended the review of electricity tariffs in the country to the PURC.

Government said it is hoping for an average reduction of 13 percent in electricity tariffs for residential consumers, whilst it is targeting a 21 percent drop for industrial consumers.

Reducing electricity tariffs was a major promise from the New Patriotic Party (NPP) ahead of the 2016 elections.

Skepticism from NDC

Members of the Minority in Parliament were not shy in expressing their skepticism of the government’s pledge to reduce electricity tariffs in the budget.

Mr. Mutawakilu previously noted that, 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 Minority Leader in Parliament, Haruna Iddrisu, also said the proposed average reduction of 13 percent in electricity tariffs for residential consumers will ultimately be insignificant when approved.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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The Finance Minister, Ken Ofori-Atta, stated that the government had revised the tariff-setting methodology, and the cost structure for power production when he read the 2018 budget statement in Parliament on Wednesday.

[contextly_sidebar id=”C3yaqkH4E4ttKNHVV5wtugeNT1snbIqX”]He added that, recommendation would be made to the Public Utilities Regulatory Commission in this regard, which will bring a little more relief to businesses and domestic users of electricity.

However, in an interview with Citi News, Dr. Wereko-Brobby, described this move by government as “extremely inappropriate,” adding that the government cannot make a recommendation to the PURC on possible cuts in utility costs as the Commission had the sole mandate of setting the tariffs.

“The idea that government should recommend specific numbers for tariffs is extremely inappropriate. Since 1997, we’ve had the PURC whose job it is to determine the methodology and the applicable rates, and also undertake three-monthly reviews of the tariffs in line with the changing circumstances such as price of fuel and the types of fuel mix that are being used by various generators, and the tariffs that are paid to the various generators. That is the sole purview of the PURC, and absolutely no government has got any right to recommend, let alone be specific about what reductions it should apply,” he said.

According to him, government could make proposals to the regulatory body about a possible reduction in the tariffs, citing possible changes in the cost of production.

He added however, that the final say on any adjustment of the tariffs should come from the PURC devoid of any pressure from the government.

“If circumstances have changed, and for example, government has been able to negotiate contracts with IPPs which have made the cost of producing power cheaper, it is incumbent on the government to draw the attention of the PURC to these changes in prices, and it must do so through the utilities who have got the actual contracts with the IPPs for the production of power. PURC will take a look at all this new information and make the necessary adjustments. But it is not up the government to say that they have changed the tariff setting mechanism and have collapsed the three bands into two. That is strictly not government’s business,” he argued.

“[Governments] are not supposed to make recommendations, if you make recommendations to the PURC, you don’t announce them in the budget. Proposals can be made to the PURC.”

Scrapping of 4-tier tariff system

In providing relief to the poor, who consume within the lifeline subsidies, but are likely to be living in compound houses, thus robbing of them such benefits, the current 4-tier tariff classification for residential consumers “will be collapsed into lifeline and non-lifeline consumers in phases,” Mr. Ofori Atta said.

Lifeline users currently pay 33.56 pesewas per kilowatt hour in addition to the 633.17 pesewas service charge monthly.

NDC remain sceptical

Members of the NDC, who had expressed doubts about  government’s ability to reduce the tariffs remained pessimistic even after the announcement.

Minority Leader in Parliament, Haruna Iddrisu, has asked Ghanaians not to be excited yet following government’s proposed average reduction of 13 percent in electricity tariffs for residential consumers, saying it will be insignificant when approved.

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By: Edwin Kwakofi/citifmonline.com/Ghana

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According to him, even though there is a possibility that the tariffs might be reduced for businesses and industries, there may not be a significant reduction for residential users.

Speaking to Citi News‘ Duke Mensah Opoku today [Monday], John Jinapor said: “If you are expecting tariffs, I and any other Ghanaian in their homes should not expect any significant reduction in their electricity tariffs. I don’t want to preempt [the budget], but I see a level of deception just like they did with the three percent VAT and claimed that it would not lead to a significant increase in prices. We can attest that the three percent flat rate is rather having a major impact and is creating problems for industry.”

The President of the Republic, Nana Addo Dankwa Akufo Addo, had hinted over the weekend at the Association of Ghanaian Industries Awards (AGI) dinner, that electricity tariffs will be reviewed downwards soon.

According to Nana Addo, details of the review will be announced by Finance Minister, Ken Ofori-Atta at the 2018 budget reading in Parliament on Wednesday, November 15.

The high electricity tariffs were a major part of the New Patriotic Party (NPP)’s campaign ahead of the 2016 elections, with many of the party’s communicators claiming that electricity cost more than rent.

“I’m glad that businesses are no longer burdened by the erratic power supply that wrecked our nation in recent years. Dumsor, thank God, appears now to be the thing of an unlamented past. Another of the stars of the government, the Energy Minister, Boakye Agyarko, is to be commended for the sterling work he’s been doing so far on this matter,” the President said.

“Furthermore, the government is moving to set in motion the process for the review of electricity tariffs and in the budget to be read by the brilliant Minister of Finance, Ken Ofori-Atta on Wednesday, I’m sure we will hear some good news in this regard.”

However, Jinapor believes that the economic challenges faced by the country this year have severely limited government’s spending power, and so a 25 percent decrease in the tariffs as was being speculated in the media was unrealistic.

“I’ve made it clear that looking at the indicators and doing the computation, I don’t believe that government can give the residential users any significant reduction. I’ve even heard some government appointees indicate that they are even going to give a 25% reduction. Even as we speak, government has not paid a cedi for the gas that we’ve consumed this year. From all indications, we are likely to incur 1 billion cedis additional debt. So even as government attempts to pay what they describe as a legacy debt of about 10 billion, we are not solving the problem. We are just scratching the surface because you are piling new and fresh debt and that is a major concern,” John Jinapor added.

“What I expect government to do is to be transparent and honest and come clean on all the challenges confronting the energy sector. The crude oil prices have increased by about 10 dollars this year alone, and the cedi has depreciated, you can’t pay that and you are promising the ordinary consumer that you are going to reduce their tariff and you are even claiming that you can do a 25 percent reduction. What they intend doing is just to come out with artificial issues and deceive us.”

The Energy Minister, Boakye Agyarko, had hinted of plans to review taxes on electricity to cushion Ghanaians in the budget back in September.

“On the budget, it is our faithful expectation that we should be able to reduce tariffs. 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,” Agyarko said at the time.

Mr. Agyarko explained that, the government is working to stabilize the price by reducing waste in the power generation and distribution systems.

“When we set out, the commitment was that, we need to correct two things. One was stabilizing power, so that we get the product that we are paying for. I believe that we have largely succeeded in stabilizing the supply of power.”

However, the Minority expressed doubt  about the government’s assurances, stating that 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.

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By: Edwin Kwakofi/citifmonline.com/Ghana

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According to Nana Addo, details of the review will be announced by Finance Minister, Ken Ofori-Atta at the 2018 budget reading in Parliament on Wednesday, November 15.

[contextly_sidebar id=”rRM6bUTkzBe5zm8vPbxPuYXWkyKDUU3Q”]The high electricity tariffs were a major part of the New Patriotic Party (NPP)’s campaign ahead of the 2016 elections, with many of the party’s communicators claiming that electricity cost more than rent.

Speaking at the Association of Ghanaian Industries Awards (AGI) dinner on Saturday night, President Akufo Addo commended the ‘stars’ of his administration for the work they had done to ensure reliable power supply to Ghanaian citizens and businesses since his tenure commenced.

“I’m glad that businesses are no longer burdened by the erratic power supply that wrecked our nation in recent years. Dumsor, thank God, appears now to be the thing of an unlamented past. Another of the stars of the government, the Energy Minister, Boakye Agyarko, is to be commended for the sterling work he’s been doing so far on this matter,” the President said.

“Furthermore, the government is moving to set in motion the process for the review of electricity tariffs and in the budget to be read by the brilliant Minister of Finance, Ken Ofori-Atta on Wednesday, I’m sure we will hear some good news in this regard.”

The Energy Minister, Boakye Agyarko, had hinted of plans to review taxes on electricity to cushion Ghanaians in the budget back in September.

“On the budget, it is our faithful expectation that we should be able to reduce tariffs. 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,” Agyarko said at the time.

Mr. Agyarko explained that, the government is working to stabilize the price by reducing waste in the power generation and distribution systems.

“When we set out, the commitment was that we need to correct two things. One was stabilizing power, so that we get the product that we are paying for. I believe that we have largely succeeded in stabilizing the supply of power”.

However, the Minority expressed doubt  about the government’s assurances, stating that 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 fuel consumption in Ivory Coast is gas, so all other things being equal, the 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,”  the Minority Spokesperson on Mines and Energy, Adams Mutawakilu told Citi News.

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By: Sammi Wiafe & Edwin Kwakofi/citifmonline.com/Ghana

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