Budget 2018: Electricity consumers to benefit from 13% reduction

From next year, residential and non-residential electricity consumers will enjoy 13 percent reduction in their tariffs.

During his second budget presentation Wednesday, Finance Minister Ken Ofori-Atta disclosed that government is working on a number of interventions to relieve consumers.

“If government recommendations to Public Utility and Regulatory Commission (PURC) are accepted, consumers will be expected to benefit from reductions in electricity tariffs,” he said.

Mr Ofori-Atta explained that the reduction is “to give relief to the poor whose individual consumption actually falls in the subsidised life-line category but who live in a compound house, the existing 4-tier tariff classification of residential consumers will be collapsed into Lifeline and Non-Lifeline consumers in phases.”

From 2012-2016, the country was faced with load shedding locally called ‘dumsor’, which affected a lot of people as well as businesses.

There was the loss of jobs, reduced economic output and the loss of consumer and investor confidence in the economy.

Some shops had to procure generators 

Aside from the load shedding, the situation was worsened by high electricity tariffs, ultimately increasing the cost of doing business in the country.

During the 2016 election campaign, candidate Akufo-Addo promised that with prudent management of the economy, the New Patriotic Party (NPP) government would ensure that electricity tariffs are reduced.

“In fulfilment of this promise, government has reviewed the tariff setting methodology and cost structure of power production.

“This review has resulted in recommendations that will be made to the PURC for consideration,” the Finance Minister said.

Some people had to use candles to finish their homework

According to him, in 2018, government efforts will be geared towards keeping the lights on at affordable rates to consumers, particularly industries and small businesses through reform and policy interventions over a two-year period.

“The electricity tariff structure will be realigned with government’s developmental goals of industrial transformation, growth and job creation,” he added.

Source:myjoyonline.com