A Deputy Minister for Energy, Andrew Egyapa Mercer, says government is focused on initiating a policy that changes the structure of electricity pricing.
Currently, ECG’s proposal for a 148 percent increment in tariffs is undergoing a review by the PURC and other stakeholders before a possible adjustment.
Speaking to Citi News, Andrew Egyapa Mercer said discussions are underway to ensure that the policy is successfully rolled out.
“We as a Ministry are engaging with the PURC to have a structure that encourages industry to consume more without recourse to other alternative energy sources,” the Minister said.
The Electricity Company of Ghana had proposed that its tariffs be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.
The proposed sharp increment, according to ECG, is due to the gap between the actual cost recovery tariff and PURC-approved tariffs as well as the cost of completed projects.
The Ghana Water Company is also proposing an increment in its tariffs to be able to at least recover its operational cost.
Some observers have said the amount consumers pay for electricity is woefully inadequate to sustain the operations of the ECG.
These proposed increments are coming at a time of great controversy over high cost of living and worsening inflation.
But the service providers maintain that the increment is necessary to keep them afloat.