Thursday, 11 September

Energy Ministry 'hopeful' ECG's proposed 225% tariff increment won't stand

News
Deputy Minister of Energy and Green Transition, Richard Gyan-Mensah

Deputy Minister of Energy and Green Transition, Richard Gyan-Mensah, has assured the public that the recent proposal for a 225% tariff increase by the Electricity Company of Ghana (ECG) does not automatically translate into higher electricity bills.

Speaking at the launch of the 9th edition of the Ghana Energy Awards in Accra, on the theme 'Repositioning the Energy Sector as a Pillar of National Development,' the deputy minister explained that while ECG argued its current 11% share of tariffs was too low to sustain operations, the final decision rested solely with the Public Utilities Regulatory Commission (PURC).

“ECG, just like other stakeholders, has the opportunity to make proposals during the consultation process. But that does not mean PURC will adopt them. It is the Commission that sets tariffs,” Gyan-Mensah stated.

He further explained that under Ghana’s IMF-supported programme, electricity tariffs were reviewed quarterly, with a major adjustment known as the MITO, expected in September or October. He stressed that these engagements were intended to ensure any new tariffs were both cost-reflective and sensitive to current economic realities.

“With all things working out, I am very hopeful that PURC will come out with a tariff that reflects the true cost of supply but is also considerate of the economic situation households and businesses face,” he said.

The deputy minister reminded the public that although PURC operated under the Ministry of Energy, it reported directly to the president, underscoring its independence. 

He added that if government intervention became necessary, it would be communicated from the presidency.

Source: classfmonline.com