General news for Friday, June 3, 2022
Energy Minister, Matthew Opoku Prempeh has suggested a change in Ghana’s current tariff structure to boost the country’s industrialization.
He made the comments in a keynote address during PURC’s ongoing stakeholder consultative engagements with regulated utilities, leading to the determination of a multi-year tariff.
The Minister noted that end-user tariffs for the commercial and industrial sectors of the economy are relatively higher and punitive compared to tariffs in other developing countries such as South Africa, South Asia Southeast and Ivory Coast.
He said that at the sub-regional level, a comparison of electricity tariffs with neighboring West African countries indicates that the cost of electricity in Ghana remains relatively high, especially for industry. , which he said has hurt Ghana’s competitiveness given that cheaper electricity is a determinant in attracting domestic and foreign direct investment (FDI) flows and achieving the Sustainable Development Goals (SDGs) 7 and 3, especially given Ghana’s position with the African Continental Free Trade Area (AfCFTA).
Dr. Opoku Prempeh, accused PURC among others; to scrutinize utility expenditure to minimize waste, to propose a tariff classification in bands, which will help save energy, to reduce the current tariff band and to offer a single tariff in each class of customers.
The deputy. The minister also called on PURC to consider giving a special tariff to primary and secondary schools, churches, mosques, agriculture and agricultural processing industries in the country.