March 21, 2019

Electricity tariffs illegally increased by 33% – Jinapor alleges

Electricity tariffs illegally increased by 33% – Jinapor alleges

Former Deputy Power Minister, John Jinapor, has alleged a 33% backdoor increment in electricity tariffs.

According to him, the work plan of the ECG presented to Parliament indicates an increase in the tariffs which the Independent Power Producers attribute to a depreciation in the value of the cedi which has affected their charges.

Speaking to Citi News’ Duke Mensah Opoku, the Yapei Kusawgu MP said the action is illegal.

“PURC gave a composite figure of 42.9 pesewas per kilowatt hour. However, just recently, the Electricity Company of Ghana, laid their work-plan before Parliament, which is also mandatory. When I checked and did the analysis, I realized that this amount has been increased by 33% to an amount of 52.7 Ghana pesewas per kilowatt hour.”

“It means there is a 33 percent increment in the composite bulk generation tariff which ultimately is passed onto you the consumer. When I inquired, the reason was that the IPPs claimed that they charge in dollar terms, and so when the cedi depreciates, they want to pass it on, but I maintain that it is illegal.”

Meanwhile, the Chairman of the Mines and Energy Committee, Emmanuel Akwasi Gyamfi, says the allegations from John Jinapor are simply untrue.

“It is never true that the cost has been passed on to the consumer. I am surprised that our colleagues from the Minority are being disingenuous and mischievous over this issue…”

The PURC, in March, announced a reduction in electricity tariffs of between 17 and 30 percent for residential and commercial consumers.

The reduction evoked mixed reactions with many asking for more reductions.

ECG tariff reductions took effect on April 1

Although the PURC announced that the tariff was to take effect on March 15, the Electricity Company of Ghana decided to begin implementation on April 1, 2018.

The Managing Director of ECG, Ing. Samuel Boakye-Appiah, prior to the implementation, explained that the reductions were to take effect in April because “the monthly billing cycle of the prepayment metering system does not technically allow ECG to implement the review in the middle of the month.”

By: Marian Ansah | | Ghana

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