This is because the Electricity Company of Ghana (ECG) has explained that the reduction will only reflect on the bills of consumers when they make their second purchase of credit for electricity for April.

The latest also follows the shift of the implementation date of the tariff reduction from March 15, 2018 to April 1, 2018.

The Public Utilities Regulatory Commission (PURC) on March 5, 2018, announced a reduction in electricity tariffs of between 17.5 and 30 percent for residential and commercial consumers to ease the burden of the high cost of electricity in the country.

The power distributor had earlier explained that the implementation date of 1^st April was due to its monthly billing system which could not immediately effect the change after the announcement in March.

Though some of ECG vendors had earlier told Citi Business News that the reduction had not been effected on April 1^st, a vendor at Circle confirmed to Citi Business News the situation has changed as of Tuesday, April 3^rd.

“The subsidies have started reflecting, unlike yesterday when you came here to check. So for today I can confirm that it has started reflecting”.

The Public Relations Officer for the Accra East Region of the ECG, Isaac Nurris Ainooson also explained to Citi Business News that consumers should see the reduction upon their second purchase this month.

“We told customers that when you vend on the 1^st of April , the first vending would aggregate your consumption for the whole of March and would give you the credit refund due you from the 15^th to the 31^st of March”, he stated.

He added, “so those who went to our vending points to deposit money for the first purchase, some of them saw the tariff as in the subsidies and all that and in the second vending, whatever is due you from the 15^th to the 31^st of March will be given to customers”.

But one customer who spoke to Citi Business News at the ECG vending point in Osu said she has been left disappointed after making her first purchase in April only to realize that the tariff reduction has not reflected on her purchase.

“Every month I pay one hundred Ghana cedis but now I pay more than that, I came today to purchase credit hoping to see the tariff reduction on my receipt but unfortunately for me, it’s the same just like the old ones, so I will have to wait until my next purchase”.

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By: Anita Arthur/citibusinessnews.com/Ghana

The post New electricity bills to start with second purchase in April – ECG appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is due to the full implementation of the recently announced electricity tariff reduction from residential and non-residential power users in the country.

The Public Utilities Regulatory Commission (PURC) in March announced a reduction in electricity tariffs of between 17 and 30 percent for residential and commercial consumers.

Though the reduction was scheduled to take effect on March 15, the ECG suggested that its monthly billing system couldn’t allow the immediate implementation.

The Managing Director of the ECG, Engineer Samuel Boakye-Appiah in an earlier press conference explained why the reduction could not take effect as indicated.

He said that “the monthly billing cycle of the prepayment metering system does not technically allow ECG to implement the review in the middle of the month”.

“Consequently, prepaid customers of ECG should note that the programming of the billing system will refund the reduction from the implementation date of the 15th to 31st March 2018. When they deposit cash or purchase electricity from 1st April 2018 onwards,” he added.

Engineer Boakye-Appiah pointed out that, the prepayment system will detect aggregate purchase for consumers in March, and then compute the reduction due them, from the effective date of 15th March to 31st March.

“This will be refunded to you on your next visit to vending point”.

He stated that the average percentage reduction, which is 15.5 percent for residential, 30 percent for non-residential, 25 percent for SLT and 10 percent for the mines, effective 15th March 2018 is only on energy consumption.

“Therefore the addition of statutory levies and other fixed charges will reduce the average percentage relief announced by the PURC”, he noted.

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By: Jonas Nyabor/citifmonline.com/Ghana

The post ECG tariff reductions take effect today appeared first on Citi 97.3 FM - Relevant Radio. Always.

Even though the reduction has been initially scheduled to take effect today, ECG maintains consumers should see it reflect from next month due to the monthly billing system.

According to the PURC, consumers should benefit from the reduction starting today, March 15, 2018.

But at a media briefing, the Managing Director of the ECG, Engineer Samuel Boakye-Appiah stressed that his outfit could apply the changes at the end of the month due to the monthly billing system.

Non residential users comprising businesses are to pay between 25 and 30 percent less in electricity tariffs.

The CEO of the Association of Ghana Industries (AGI), Seth Twum Akwaboah explains that they are hopeful the power company will fulfill its plan.

“If that is the case, then it means it is a systems challenge and for that reason we cannot have too much qualms about it as long as the businesses could buy credit for the next two weeks and then the ensuing month when they buy, they are crediting, then that is fine, we should be able to accommodate it,” he said.

Similarly, mining companies are expecting a ten percent reduction in electricity tariffs.

Though the sector believes plans may have been distorted a little, the Director of Communications at the Chamber of Mines, Ahmed Naatogmah says they will still comply with the directive.

“Definitely you were expecting something to start so you would have planned for it but I wouldn’t say we are disappointed. Unless of course at the end of the process the reimbursement is still not done, then we can have some concerns to raise,” he argued.

Meanwhile the ECG has indication that it will not hesitate to go back to the PURC to demand an upward adjustment in the tariff if the implementation of the tariff reduction leads to losses.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Businesses track ECG on reimbursement promise appeared first on Citi 97.3 FM - Relevant Radio. Always.

The utility regulator on Monday, March 5, 2018, announced that it has reduced electricity tariffs between 10 and 30 percent for the various categories of consumers.

[contextly_sidebar id=”Y2lzidN2Spjuk2an3dyrAUN9F0XTUqzS”]The development also followed the completion of exhaustive consultations with the various stakeholders comprising utility providers, consumers and industry analysts.

Commenting on the latest directive, the Public Relations Officer of the Northern Electricity Development Company (NEDCo), Alhassan Ababa, told Citi Business News his outfit will comply albeit contrary to their expectations.

NEDCo, for instance put forward a proposal seeking about 200 percent rise in tariff, compared to the figure approved by the PURC in 2015.

Though Mr. Ababa explains that the latest move might affect their initial operational plan,they will work with it in the interim.

“We feel very strongly that if we had received what we asked for, it would have made our work very easier and enabled us serve our customers much better. But these notwithstanding, the PURC is just not considering our position by rather considering all factors that come into play in the generation and distribution of electricity and they feel that some reduction between 10 and 30 percent is what we should get now and hence they have approved that, we will work with it and see how it will go,” he stated.

He was however hopeful that the decision to maintain the energy service charges for the utility companies should cushion them for some time.

The energy service comprises charges that are imposed to facilitate the response time, resolution of complaints, among others.

“The energy production charges I want to believe comprises what goes into the production, transmission and distribution and those components the PURC considers that something could be done and that have been effected.”

PURC justifies reduction in tariffs

The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Maame Dufie Ofori,justified the basis for the reduction.

Speaking on Eyewitness News, Madam Dufie Ofori attributed the decision to a decline in the key components that form the basis for the tariffs.

“Gas price has come down; at the time they were asking for proposals, the hydro allocation was only 60 percent. Now it is 65 percent which means it is a cheaper source of generation. Because of the renegotiated power purchase agreement, their capacity charges have gone down ranging between 20 to 25 percent and also their losses too have been reviewed,” she stated.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post NEDCo, others to comply with tariff reduction amidst discontent appeared first on Citi 97.3 FM - Relevant Radio. Always.

Mr. Bawa, who once worked at the Energy Ministry at the peak of the power crisis in the previous NDC administration, believes the reduction compromises the revenue projections for utility providers and power generators thereby exposing them to debt.

[contextly_sidebar id=”Ln2zSrdS06O0OikLWD98D3UHgJQBiykX”]”If you look at the challenges that brought us into dumsor, apart from the capacity and fuel security, it also had to do with the financial health of the utilities,” he said on Eyewitness News.

“The current move, the reduction is on the energy charges, it is an encroachment on their revenues because energy charges are one of the accruals that the utilities will make.”

In line with longstanding promises from the government, residential customers per the new tariff cuts are to enjoy a 17.5% reduction, while non-residential customers will see tariffs cut by 30%.

Those in the mining sector have also been given a 10% tariff cut, and 25% cut for Special Load Tariff Customers (LV, MV & HV).

The Public Utilities and Regulations Commission (PURC) said the decision was arrived at after extensive consultations with stakeholders in the sector, as well as detailed analysis of proposals tendered in by companies in the power distribution chain.

But Mr. Bawa said the government was risking energy security in the name of promises.

“I know the factors that took us to dumsor. Those factors are still lingering. My fear is that, if we don’t consolidate a make this system robust, and just because of the fact we want to satisfy electoral promises, we go into situations like this we may expose ourselves to yet another dumsor.”

Reduce taxes instead

Mr. Bawa further argued that the government should be “focusing on the burden it puts on the tariffs in terms of taxes and levies.”

“For example, you have a VAT of 17.5 percent on it. In all these arrangements, the take that goes to the state and the take to the government has not been touched.”

He suggested that the government simply reduce the taxes on the tariff, which will still benefit industry by allowing them to expand because of the reduced energy costs

“Industry will expand, they will make profits; you tax those profits. They expand, they employ people and you still tax incomes. This is how you will get it [revenue]. It is an indirect road but you will eventually get the money. That is the proposal I am making,” Mr. Bawa said.

Bullying from gov’t

Mr. Bawa, had earlier advised PURC not to yield to any pressure from the government to reduce tariffs beyond realistic margins.

Mr. Bawa also encouraged the PURC to withstand what he termed as “bullying” from government and put the interest of the country ahead of political interest with regards to the adjustment of utility tariffs.

The PURC has however insisted that it was not pressured into effecting these reductions, and that such major reviews are done every two years.

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

The post Tariff reduction could take us back to ‘dumsor’ – Bawa appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Commission on Monday announced a massive reduction in power tariff for businesses and residential facilities two months after President Akufo-Addo indicated the government will ensure an average of 14% reduction in electricity tariffs for non-residential users in the country.

[contextly_sidebar id=”WbhzsM0QlbCoxLbhqn3yOnaezFqnotpR”]But the according to the Executive Director of the PURC, Mami Dufie Ofori, the decision to reduce the tariffs was taken independent of government and other stakeholders.

She said the PURC made the announcement according to its timetable that called for a major review of utility tariffs every two years.

“We are not influenced as such by what the government will say. The government itself owns the utility so whether by their own study of the utility operations they believe there could be a decrease, that was an issue for them but we went according to our timetable where we do a major review every two years . So we were not influenced by the government’s proposal,” she told Umaru Sanda Amadu on Eyewitness News.

She argued that the PURC’s announced percentage reductions varied from the one promised by President Akufo-Addo in January.

“After he [Akufo-Addo] made that statement, the Minister for Energy [Boakye-Agyarko] came out to indicate that what the president was saying is a proposal and that we the PURC will at the end of the day study and take the decision…[Akufo-Addo mentioned 14% [for non-residential facilities], but we raised the same thing to 30%…. We did the work based on our analysis from the data we have and that is how we came up with this independent decision,” he noted.

While admitting that various stakeholders were allowed to present proposals on the way forward on the review of the tariff, Mami Dufie Ofori denied that the PURC took the decision to review downwards the tariffs based on a particular proposal.

Meanwhile, the General Secretary of the Public Utilities Workers’ Union, Michael Adumatta Nyantakyi, has expressed surprise over the decision.

According to him, utility service providers had provided justification for an upward review of the tariffs hence it is shocking the PURC did contrary.

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By: Jonas Nyabor/citifmonline.com/Ghana

The post Gov’t didn’t force us to reduce tariffs – PURC appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Public Utilities Regulatory Commission (PURC), on Monday, March 5, 2018, announced that electricity tariffs will go down between 10 and 30 percent for various categories of consumers.

The decision follows the completion of the necessary consultations with all stakeholders in the energy sector.

The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Maame Dufie Ofori justified the basis for reduction in the utility tariffs for consumers.

Speaking on Eyewitness News, Madam Dufie Ofori attributed the decision to declines in key components of the tariff.

“Gas price has come down; at the time they were asking for proposals, the hydro allocation was only 60 percent. Now it is 65 percent which means it is a cheaper source of generation. Because of the renegotiated power purchase agreement, their capacity charges have gone down ranging between 20 to 25 percent and also their losses too have been reviewed,” she stated.

Citi Business News has been speaking to some businesses and they are highly expectant of the massive reduction in cost of operation.

For mining companies that are to enjoy some ten percent reduction in tariffs effective the 15^th of this month, the news means they could be saving as much as 2 million to 3 million dollars annually.

The Director of External Affairs and Communications at the Ghana Chamber of Mines Ahmed Nangtomah says this should improve operations in the mining sector.

“So the companies that are with the ECG will be impacted by this direction and to them it is good news because 10 percent reduction in electricity bills is good enough for some of the companies who spend up to about 28 million dollars a year on electricity needs. So they will just factor this into their costing. They can save now and improve efficiency along the line.”

Meanwhile, the Ghana Union of Traders Association (GUTA), whose members comprise non residential users, has equally lauded the reduction.

As the Executive Member of GUTA, Benjamin Yeboah explains, the 30 percent drop should reflect significantly in the cost of doing business for members.

“Every user has a separate regulatory meter so definitely if we know that the you usually buy let’s say 500 cedis or 1,000 cedis for a month and you are using the same gadgets, definitely now if you should buy that much a month, you will realize that at the end of the month you will have some reduction so definitely you will be able to save.”

While admitting that it may be too late for residential consumers to be considered in the reductions, the Executive Director of the Consumer Protection Agency, Kofi Kapito maintains the reduction should bring respite to consumers.

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By: Citibusinessnews.com/Ghana

The post Reduced tariffs: Mining firms to save 3 million dollars annually appeared first on Citi 97.3 FM - Relevant Radio. Always.

This was captured in a statement from PURC, signed by its Executive Secretary, Mrs. Mami Dufie Ofori, and sighted by citifmonline.com.

[contextly_sidebar id=”woz22upIDbY9v6wx1Atp9Lr5y9Ep3PHL”]The Commission said the decision was arrived at after extensive consultations with stakeholders in the sector, as well as detailed analysis of proposals tendered in by companies in the power distribution chain.

“The PURC after extensive stakeholders’ consultations, detailed technical analysis of utility tariff proposals and consideration of inputs and concerns of consumers, has approved tariff reductions for various electricity consumer categories, effective 15th March 2018.”

The Commission received tariff proposals from the utility service providers in the electricity sectors namely, Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company Limted (EPCL) and the Ghana Water Company Limited (GWCL), ” the statement added.

No cut in water tariff

The Commission however failed to reduce water tariffs.

“Review of water tariffs require further consultations and the Commission is unable to announce a decision at this time. Water tariffs therefore remain the same and a decision will be taken in the coming weeks,” the statement said.

Gov’t urges PURC to reduce tariffs 

This comes on the back of government’s recommendation for a reduction in electricity tariffs to lighten the burden on Ghanaians.

President Akufo-Addo subsequently in January 2018 announced an average of 14% reduction in electricity tariffs for non-residential users.

“From January this year, the non-residential tariff rate, which is the rate which includes all of you here, is being reduced by an average of 14%. For barbers, it is being reduced by 18%; for hairdressers and beauticians, 15.7%, and for tailors, 9.8%,” he added.

Don’t be bullied into excessive tariff reductions – Bawa to PURC

A member of Parliament’s Mines and Energy Committee, Edward Bawa, had earlier advised PURC not to yield to any pressure from government to reduce tariffs beyond realistic margins.

Mr. Bawa also encouraged the PURC to withstand what he termed as “bullying” from government and put the interest of the country ahead of political interest with regards to the adjustment of utility tariffs.

“I appreciate the enormity of the task before the PURC. Particularly as the Government, led by no less a person than the President of the republic, has been breathing down the Commission’s neck to ensure that an electoral promise is fulfilled even if it is at the peril of the Power Sector. The Commission must be bold and stand up to bullying government and place the long-term interest of the state above a political party’s interest,” he said in a statement.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post PURC reduces electricity tariffs; 17.5% for homes, 30% for businesses appeared first on Citi 97.3 FM - Relevant Radio. Always.

Mr. Bawa also encouraged the PURC to withstand what he termed as “bullying” from government and put the interest of the country ahead of political interest with regards to the adjustment of utility tariffs.

“I appreciate the enormity of the task before the PURC. Particularly as the Government, led by no less a person than the President of the republic, has been breathing down the Commission’s neck to ensure that an electoral promise is fulfilled even if it is at the peril of the Power Sector. The Commission must be bold and stand up to bullying government and place the long-term interest of the state above a political party’s interest,” he said in a statement.

[contextly_sidebar id=”ziYu77skxytKZFX1HvGTEY3bKrzbkNr1″]Citifmonline.com had reported that PURC may not be able to reduce tariffs by the 14% margin for industrial and residential users promised by President Nana Akufo-Addo.

Documents sighted by citifmonline.com indicate that the PURC is instead pushing for a 12.54% reduction in the tariffs for businesses instead.

Although Mr. Bawa, who is also the Member of Parliament for the Bongo constituency on the ticket of the opposition National Democratic Congress (NDC), said he is not against a reduction in the tariffs, he stated that it would be unfortunate for the government to mount undue pressure on the PURC in order to fulfill political promises.

He however admonished government to remove the taxes on utilities if they want to drive the costs for Ghanaians down, instead of putting the PURC in a tight corner.

“I believe in tariff reduction. This is because many Ghanaians are either receiving low incomes or without any regular income. However it is wrong for government to subject the utility sector to profiteering. My proposal is that government must scrap all levies and taxes on electricity as a means of improving access and making it affordable to all Ghanaians. This is the way to go instead of the attempt to eating into the revenues of the Utility Service Providers,” he added.

PURC meets stakeholders

PURC, in February 2018, held a series of consultations with stakeholders in the sector during which some of the service providers pushed for an increased in their allocations.

For instance, NEDCo proposed about 200 percent increase in tariff likewise did the power distributor; VRA, enclave power, among others.

Below is the full statement issued by Edward Bawa:

DON’T SEND US BACK INTO DUMSOR

On March 2, 2018 I read a piece of news item on citifmonline with the caption: ELECTRICITY TARIFFS TO DROP BELOW GOVT’S PROPOSED 14%. As a Ghanaian I should be excited by this piece of news. But as an individual who was at the centre of things through the excruciating experience of Load Management from 2013 to 2015, it is only natural to share a few concerns with this story and draw the attention of the government and in particular the PURC to some questions that need answers.

The Public Utility Regulatory Commission (PURC), in pursuance of section 3a and 16 of the PURC Act 1997 (Act 538) and in line with its electricity rates setting guidelines, I am reliably informed, received tariff proposals from the Volta River Authority (VRA), the Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company Limited ((NEDCo), and Enclave Power Company Limited. My understanding is that VRA  request was in respect of 128.4% upward adjustment in the Bulk Generation Tariff (BGT). On the other hand GRIDCo suggested a 62.9% increase in the Transmission Service Charge  (TSC). ECG and NEDCo proposed a 64.9% and 204% increase in the Distribution Service Charge (DSC) respectively.

My information is that PURC’s review and analysis of the tariff proposal submitted by the Utility Service Providers (USP) indicate a total revenue requirement of GHc 58.138 billion to be recovered from the regulated electricity market.

The overall effect of the BGT, TSC and DSC is that there is  a 27.4% increase in Average End User Tariff – from GHp63.7694/kWh to GHp81.2309/kWh.

Notwithstanding the proposals by the Utility Service Providers, PURC indicates that based on the results of their own analysis and review, a 12.54% reduction in tariffs across board for all categories of consumers is possible. I am told that they are contemplating achieving this by first removing the 5% PURC benchmark Provision for uncollectibles which has been part of the revenue requirements for the Distribution Utilities and second, by taking into consideration a 31.5% growth in customer population between 2015 and 2018.

Notwithstanding the possible areas where the reduction will come from,  a few questions need to be answered.

1. Is this an attempt by PURC not to contradict the President who jumped the gun to announce reductions in tariffs for categories of customers? Categories that don’t exist in the categorization of consumers by PURC.
2. Has PURC taken into consideration forex losses to the Utility Service Providers due to continuing depreciation of the Ghana Cedi against the US dollar? The Cedi has lost value since the last review of tariffs. The current tariffs have been devalued by about 15% since the last review exercise. Without an appreciable shift in other variables, any reduction in tariffs can threaten the sustainability of the Utility Service Providers
3. Has PURC also taken into account the increasing dominance of thermal power generation in the overall generation mix?
4. There are new thermal plants being introduced into the grid. Has PURC considered a possibility of increased distribution loses that must be accounted for?
5. How will a proposed reduction cater for a further strengthening of the Transmission network and send signals to customers to improve efficiency. And how will this reduction minimise GRIDCo’s risk exposure to energy volume variations?
6. There is excess capacity comprising AKSA Karpowership and CENIT totalling 780MW. This translates to a total energy of 6287GWh. In monetary terms this constitutes about GHc 2.364 billion idle capacity payments. The consequence of not utilising this excess capacity is that government risk pilling debt as the guarantor of all the plants that will be available in excess of demand unless, this is absorbed in the tariff. Has this been considered in the PURC proposal of tariff reduction?
7. Has the Commission equally factored in the increasing natural gas requirements. Government in recent weeks has been indicating a possible reduction in gas price for the industry at $6.5/MMBtu. At our last encounter with GNPC and the Ministry of energy in Koforidua, the Mines and Energy Committee could not be told clearly, the details on how that savings will be achieved. PURC must be transparent on the information given to them by government in gas pricing. In addition, the recent Gas Sales Agreement between Government and Gazprom is expected to deliver gas to the Power Sector in 2019. (Government must be transparent and make available to the public the details of the Gazprom agreement) . Has PURC paid attention to the fact that LNG price is going to vary depending on Brent Crude oil removing the element of price stability associated with gas.
8. Why has government in their proposal to PURC avoided its own burden on the industry? Government must as a matter of urgency remove the 17.5% VAT on tariffs as this tends to punish industry the more. The power sector must be seen as a strategic sector whose value lies in supporting economic growth from which government can derive revenues through taxes. This will be in line with government own policy of moving away from over taxation to more production. It is a lazy approach for government to use the Power Sector as a direct revenue generating source.
9. Is it true that this proposed reduction in tariffs is only cosmetic and a desperate attempt to fulfil an electoral promise. This is only a bait to console Ghanaians ahead of a possible increase in tariffs of about 50% when the Compact II kicks in in September?

I appreciate the enormity of the task before the PURC. Particularly as the Government, led by no less a person than the President of the republic, has been breathing down the Commission’s neck to ensure that an electoral promise is fulfilled even if it is at the peril of the Power Sector.

The commission must be BOLD and stand up to bullying government and place the long term interest of the state above a political party’s interest. I believe in tariff reduction. This is because many Ghanaians are either receiving low incomes or without any regular income.

However it is wrong for government to subject the Utility sector to profiteering. My proposal is that government must scrap all levies and taxes on electricity as a means to improving access and making it affordable to all Ghanaians. This is the way to go instead of the attempt to eating into the revenues of the Utility Service Providers.

EDWARD ABAMBIRE BAWA

MP, BONGO AND A MEMBER OF THE MINES AND ENERGY COMMITTEE.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Don’t be bullied into excessive tariff reductions – Bawa to PURC appeared first on Citi 97.3 FM - Relevant Radio. Always.

Government in the 2018 budget suggested that it is working to reduce tariffs by some 14 percent on the average, for industrial and residential users.

But information available to Citi Business News rather points to a marginal drop in the tariffs.

Documents sighted by Citi Business News indicate that the PURC is proposing a 12.54 percent reduction in tariffs for businesses.

According to the utility regulator, this is premised on two grounds; the first is that, the PURC will remove the 5 percent Benchmark provision for tariffs that have been in default to the various utility companies such as ECG, VRA, NEDCo, enclave power, among others.

The second reason for the PURC’s proposed reduction is that there has been about 32 percent increase in consumer base from 3.5 million to 4.7 million between 2015 and presently.

However, earlier stakeholders’ consultations have all shown that the various providers are pushing for an increase in their allocations.

For instance, NEDCo proposed about 200 percent increase in tariff likewise did the power distributor; VRA, enclave power, among others.

According to documents available to Citi Business News, the end user tariffs comprising Bulk Generation, Transportation and distribution service charges will inch up by some 27 percent; from 64 pesewas per kilowatt hour to 81 pesewas per kilowatts hour.

But Citi Business News understands that the decision by the PURC to scrap the 5% benchmark provision will have to be reviewed as it is likely to have dire consequences on the power distributors as they risk huge financial losses over unpaid debts.

It is still unclear when the new tariffs will be announced but industry watchers are hopeful the final decision should be made within the next few days.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Electricity tariffs to drop below govt’s proposed 14% appeared first on Citi 97.3 FM - Relevant Radio. Always.