Parliament has passed the Energy Sector Levies Amendment Bill which will review the two components of the levies downwards.

National Electrification Scheme Levy and the Public Lighting Levy have also seen some reductions.

While the National Electrification Scheme Levy goes down from 5% to 2%, the Public Lighting Levy has been reduced slightly from 5% to 3% per kilowatt hour of electricity charged on all categories of consumers.

The reduction in the levies is estimated to cost government about GHC308 million in revenue losses.

Making a justification on the need for the cuts on the floor of the House yesterday, Chairman of the Finance Committee, Dr. Mark Assibey Yeboah, explained that the reduction will bring relief to electricity consumers.

“Government as part of the 2017 Budget statement and economic policy has proposed to reduce or abolish some taxes in order to bring relief to consumers.”

“Pursuant to that commitment, government introduced this bill to amend the energy sector levies Act (2015, Act 899) as part of measures to reduce the energy sector levies imposed on consumers,” Dr. Assibey Yeboah said.

But the Minority Caucus, who had already chastised the Akufo-Addo-led administration over its failed campaign promise to reduce electricity tariff drastically, said the reduction of the National Electrification Scheme Levy from 5% to 2%, the Public Lighting Levy slightly from 5% to 3% per kilowatt hour of electricity charged on all categories of consumers will not make any meaningful impact.