ECG Commends PURC's 1.52% Electricity Tariff Reduction, Stresses Consumer Role

George Christian Boadi November 26, 2023 0

In a positive response to the Public Utility Regulatory Commission's (PURC) announcement of a 1.52% reduction in electricity tariffs, Samuel Mahama, the Managing Director of the Electricity Company of Ghana (ECG), expressed gratitude and optimism regarding the potential benefits for consumers.

According to Mahama, the reduction is significant as high tariffs have often discouraged the public from promptly paying their bills, thereby directly impacting the operational costs of the ECG. He emphasized that the 1.52% reduction will make a considerable difference and contribute to alleviating financial burdens on consumers.

"It has always been ECG's position that it is not mostly about an increase in tariffs that is going to change anything because the more the tariffs increase and the ECG not having a proper operational turnaround and the more costly the power generation is, it means that people are going to have to pay," Mahama stated in a 3news.com report.

However, Mahama noted that the true impact of the reduction would depend on how consumers utilize electricity in their homes. He highlighted the importance of individual attitudes, such as turning off appliances when not in use, in appreciating the benefits of the reduction.

"The reason why this price reduction is coming is because of a few factors. PURC took into consideration inflation, gas price, and the stability of the currency that they used to determine this marginal drop, but it will be felt by Ghanaians in terms of how much they now have to pay," he added.

The PURC's decision to adjust electricity tariffs is part of its Quarterly Tariff Review Mechanism, tracking and incorporating movements in key uncontrollable factors, including the exchange rate between the US dollar and the Ghana Cedi, domestic inflation rate, electricity generation mix, and the cost of fuel, primarily natural gas. The new tariffs will be effective from December 1, 2023, to February 29, 2024, aiming to strike a balance between economic factors and consumer affordability.