The Independent Power Producers (IPPs) have expressed dissatisfaction with the recent 1.52 percent reduction in electricity tariffs announced by the Public Utilities Regulatory Commission (PURC).
The IPPs argue that the reduction may adversely impact the debt restructuring efforts of the Electricity Company of Ghana (ECG), making it challenging for them to meet their financial obligations.
Elikplim Akpetorgbor, the President of the IPPs, emphasized the financial strain faced by the sector and raised concerns about the feasibility of restructuring debts in the face of a tariff reduction.
“We are on life support and cannot guarantee continuity. If you give us a haircut, say a 30% or 40% reduction, who is going to pay our debts for us?”
“The debt in question is not our savings, it’s not our profit. So it is impossible to restructure it.”
Meanwhile, PURC has defended the tariff reduction, citing factors such as a reduction in inflation, a stable exchange rate, and increased hydro and gas production.
The Director of Research and Corporate Affairs, Dr. Eric Obutey, said the production of more gas and hydro also pushed the tariff down.
“The downward review was necessitated by four factors: the generation mix, where we now use more hydro compared to thermal. Hydro now accounts for about 31.9%, and thermal is about 68%.”
“We have a downward trend in inflation, which has dipped by about 3.6%, and we also have fuel prices, which have gone down by about 5.9%. So if you put it all together, these factors necessitated the downward trend in electricity prices,” Dr. Eric Obutey explained.
In its fourth-quarter tariff review for 2023, the Public Utilities Regulatory Commission (PURC) disclosed adjustments, including a 0.34% rise in water tariffs and a 1.52% reduction in electricity tariffs scheduled to come into effect on December 1, 2023.
For residential customers, the water tariff increased from GHS/m³ 4.72 to 4.74, while non-residential customers experienced an adjustment from GHS/m³ 14.13 to 14.19.
Latest Stories
-
35th CIMG Awards: Full list of winners
46 mins -
The Multimedia Group wins big at CIMG Awards 2023
2 hours -
Bernard Mornah wins PNC flagbearship race
2 hours -
Video: Confusion at PNC National Executives election
3 hours -
Rapper E.L. joins King Promise as Guinness Accravaganza headliner for September 21 showdown
3 hours -
PNC Congress: Bernard Mornah leads in Greater Accra Region
4 hours -
Reject violence, divisive rhetoric, embrace peace ahead of elections – Bawumia appeals to Ghanaians
4 hours -
SEFF’s debut single ‘Father’ sets stage for bold new talent
5 hours -
Super typhoon Yagi kills four in Vietnam
5 hours -
Hollard Insurance-UENR Mentoring Day: Students urged to let hard work, integrity shine to advance career
5 hours -
2024/25 GPL: Vision FC opens campaign with draw against Berekum Chelsea
6 hours -
If Baba Yara pitch was good, Mumin clears the ball – Laryea Kingston
6 hours -
GPL 2024/25: Samartex begin title defence with draw against Dreams FC
7 hours -
Financing road construction and maintenance through a special fuel levy: A sustainable solution for Ghana’s road infrastructure
7 hours -
Ghana Celebrity Impact Awards 2024 launched to honor positive social influence
7 hours