Friday, May 14, 2021

ECG proposes an increase in tariffs to support operational activities

The Electricity Company of Ghana (ECG) says it needs more funds to support its operational activities.

The Managing Director of the company, Kwame Agyeman-Budu at a public forum on Thursday, April 8, 2021, said while ‘he is aware that the proposal will only materialize after approval from the Public Utilities and Regulatory Commission (PURC), he believes that ECG must have access to more funds to enable it to operate efficiently ‘.

Currently, lifeline consumers who are rated as poor and low-income earners pay GHS16 for the power consumed and extra GHS2.13 as service charge, making it a total of about GHS18.

“We need money to do it [improve]. If we get the increase we will love it [but] that will be up to the PURC because, no matter what we propose, they will ultimately decide.”

“In terms of distribution, we need support, because we have to do upgrades to make sure the system is sustainable.

 We don’t wait till something is broken before we fix it. We need additional funds to upgrade our systems at all times,” he added.

On whether the bid will not lead to an extra burden on the finances of Ghanaians, Agyeman-Budu said the details will be given should PURC approve.

Meantime, a former ranking member of Parliament’s Mines and Energy committee, Mutawakilu Adam has hit against the scheme, emphasising that the ECG has not shown efficiency in its operations to warrant an increase in tariffs.

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