Business News of Wednesday, 10 February 2016

Source: classfmonline

'Ghana’s power tariffs cheapest in sub region'

Nana Yaa Jantuah Nana Yaa Jantuah

Ghana has one of the cheapest electricity tariffs in the West African sub region, the Director of Public Relations and External Affairs of the Public Utilities Regulatory Commission (PURC) has said.

Nana Yaa Jantuah told Chief Jerry Forson on Accra100.5fm’s breakfast show Ghana Yensom on Wednesday February 10 that irrespective of complaints by Ghanaian consumers that they are being burdened with hefty tariffs, the country’s tariff regime, as far as electricity is concerned, is among the “cheapest” in the sub-region.

“We have the lowest tariffs in the sub-region,” she insisted, adding that those who compare Ghana’s tariff regime to that of America, which has a very low tariff regime, are missing the point.

“America uses shale gas which is so cheap,” she said, adding America’s tariff regime is heavily tax-laden.

According to her, a nation’s tariff regime is dependent on the kind of sources of power generation used. Ghana depends on a mix of hydro and thermal power production. The Government has said repeatedly that more focus will be given to thermal production as hydro sources cannot shoulder the entire production burden.

The PURC recently approved a 59.2% hike in power tariffs. An intervention by the Government, after agitations by Organised Labour, led to the announcement of some respite for vulnerable users who fall within the 0 – 50 (lifeline) and 51 – 300 units band.