The African Centre for Energy Policy (ACEP) and Industrial and Commercial Workers Union (ICU) have lauded the Public Utilities Regulatory Commission (PURC) over the reduction of electricity tariff.
Describing the action as the best news ever in recent years, the two organisations said it will bring relief to Ghanaians and bolster businesses.
Starting March 15, residential and non-residential customers will enjoy 17.5 percent and 30 percent electricity tariff reduction respectively.
The announcement was made following an extensive consultation with stakeholders including the government, Independent Power Producers (IPP) and civil society organisations.
PURC Director of Operations, Abubakar Jabaru has explained the renegotiation of some energy deals and the customer growth rate of the utility companies informed the decision.
“We looked at their presentations and [decided] to revise the benchmark from 4 percent to 3.8 percent,” he said of the companies in a discussion with Joy News’ Evans Mensah.
He said the government has shown the commitment to reduce tariff and as utility regulator, the PURC believes it is time the benchmark is revised.
Some Ghanaians who spoke to Joy News have lauded the government for the decision, saying it will bring some relief to their lives.
“It is good for the government to reduce the tariff for us because already things are difficult, so it will help us,” a resident at Dansoman in Accra said.
Although shocked by the reduction, ACEP Executive Director Benjamin Boakye said it will spur industrial growth and make Ghana competitive in the sub-region.
“It’s good for competitiveness [and] we can expect many consumers coming onto the grid but what I do hope is that the utilities will pick up and up their game and be efficient in delivering their services,” he said.
Welcoming the announcement as the best news in recent times, ICU General Secretary, Solomon Kotei said the cost of living in the country will go down as a result of the reduction.
But Ghanaians are going to take their calculators to keenly monitor how much would be knocked off their bills when implementation starts, he said.
“It is a huge relief to the society…we will not experience dumsor,” he said, but he could not state if their members will reduce the price of their commodities.