A member of the New Patriotic Party’s (NPP) communication team, Awal Mohammed, has described the recent announcement of a hike in electricity tariffs as untimely and insensitive.
According to him, current economic indicators are favourable and do not warrant a tariff increase at this time.
The Public Utilities Regulatory Commission (PURC) recently announced a 2.45% increase in electricity tariffs, set to take effect on July 1, 2025.
The PURC said the hike is based on an inflation rate of 20.67%, an exchange rate of GH¢10.3052 to the US dollar, and an increased weighted average cost of gas.
However, Mohammed argued that the tariff should be scrapped, just as the “Dumsor Levy” was.
“Given the current economic indicators, such as inflation trending downward and a stabilising exchange rate, this increase is both untimely and insensitive. The government must take decisive steps to halt this levy, just as it did with the Dumsor Levy,” he was quoted by myjoyonline.com.
The NPP communicator said the justification for the increase does not reflect the current state of the economy, stressing that IMF conditionalities should not be used as the basis for the increment.
“When the last tariff hike was introduced, inflation was about 21%, and the cedi was trading at GH¢11 to the dollar. Now, inflation has dropped to around 18%, and the cedi is more stable. It is unreasonable to impose another increase under these conditions.
“Last year, there was a 3% reduction in tariffs despite IMF involvement. The suggestion that this hike is IMF-driven doesn’t hold,” he added.
Mohammed also warned that the government’s flagship 24-hour economy policy could be undermined by high electricity tariffs.
“The government promised that the 24-hour economy would be supported by reduced electricity tariffs to help welders, manufacturers, and small businesses. This hike contradicts that promise and places additional strain on citizens.
“Suspending the levy would provide relief and allow time to assess the economy before making further adjustments,” he noted.
SSD/MA
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