Energy group urges Ghana government to scrap killer 10 pct energy tariff

The African Center for Energy Policy (ACEP) described here on Thursday the 10 percent Energy Tariff imposed on electricity consumers as regressive and counter-productive.


It said that kind of tax was collapsing industries and forcing some of them to relocate their operations elsewhere.

A statement issued by ACEP said the reduction or removal of the levies and taxes would not undermine the work of the utilities.

“If the intention of government is to raise more revenue to create jobs and develop the country how about the opportunity cost?

“Industries that create many of the jobs are folding up under higher end user tariff and some even moving to other countries. That will be counter-productive, and government must reverse the policy immediately,” ACEP maintained.

After much public outcry against sharp increases in consumer bills, the Public Utilities and Regulatory Commission, (PURC) ordered the Electricity Company of Ghana (ECG) on Tuesday to suspend the use of a new billing system they were using to bill consumers.

However, ACEP argued that the utilities regulator acted too late and fell short of dealing with the critical issue of refunds to the consumers who were over-charged.

It said by ordering suspension of the software, the PURC was agreeing that consumers had been over-billed.

“But PURC failed to apply the full strength of the Act that set it up. Suspension of the software is not enough. PURC should compel ECG to comply with the section of the PURC Act which requires the utility to adjust consumers’ next bill with the excess amount or pay cash to them,” it added. Enditem.

Source: Xinhua

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