The recent electricity tariffs reduction announced by the Public Utilities Regulatory Commission (PURC) will lead to government losing GHC1.8 billion in revenue annually, the Finance Minister Ken Ofori-Atta has revealed.

The amount would, however, become a savings for both residential and commercial customers of the Electricity Company of Ghana (ECG) who hitherto complained bitterly about the high cost of electricity in the country.

Presenting the 2018 mid year Budget in Parliament Thursday, July 19, 2018, the Minister of Finance said, “electricity tariffs have been reduced by 17.5% to 30% for the various consumer classes leading to the savings of approximately GHC1.8 billion per year for businesses and households."

He added that government has also given tax relief of over GHC800 million to businesses and household through the abolishing of nuisance taxes.

Touching further on the energy sector, Mr Ofori-Atta stressed that government would continue to make significant investment in the sector, adding that government is also renegotiating the terms of the Power Purchasing Agreements(PPAs) to avert defaulting and unquestionable financial transactions in the energy sector inherited from the NDC government.

He indicated that government is streamlining the energy sector to clear the huge debt in the sector to ensure that the country does not return to the era of 'dumsor.'