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

The post Gov’t can’t recommend reduction in power tariffs -Wereko-Brobby appeared first on Citi 97.3 FM - Relevant Radio. Always.

The PURC has fined the ECG  an amount of Gh¢ 202,640.00 for breaching laws regarding the sale and purchase prepaid of units.

According to the PURC, the ECG breached LI 1861 and LI 1935.

In a statement, it indicated that, the penalty also “covers the Electricity Company of Ghana’s (ECG) refusal to provide contingency measures to ensure customers of pre-payment metering could proceed to buy credits during the industrial strike which was embarked on by ECG workers in the first week of September.”

But there are reports within the management of the ECG, suggesting that the company would resist the fine.

Speaking on Eyewitness News, Mr. Wereko Brobby insisted that the ECG ought to pay the fine, saying “the PURC has acted rightly in asking the management of ECG to pay, and if they won’t pay they have to show just cause and reason why they won’t pay…To simply say we will not pay and we are not responsible, that is anarchy…I think it is unfortunate that anybody will say they wouldn’t pay because they think it is capricious and it is not their fault.”

He further added that, the ECG should be compelled to give tangible explanations as to why it should not be fined, if it decides to challenge the PURC’s  move.

“I think what we ought to be very clear about is that, if indeed there is a law that has been breached by the workers of ECG, then ECG’s board and management who are responsible and have gotten a contract with the PURC ought to be able to explain why the law was breached and also explain any effort they made to stop the unfortunate action, knowing the workers were going to breach the law.”

“If we give the impression that management of a corporation cannot be held responsible then we are laying down the grounds of anarchy in which anybody can decide.”

It would be recalled that workers of the ECG who are members of PUWU, embarked on strike for days in protest against government’s decision to privatize portions of the company which they claim will affect them, and is not in the larger national interest.

During the period of the strike, ECG customers were left stranded at prepaid centers, a situation the PURC says breaches the law.

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By: Marian Ansah/citifmonline.com/Ghana

The post PURC fine against ECG appropriate – Wereko Brobby appeared first on Citi 97.3 FM - Relevant Radio. Always.