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ACEP kicks against proposed utility tariff increase - calls it 'daylight robbery'

By Joy Business | Kuuku Abban
Business & Finance ACEP kicks against proposed utility tariff increase - calls it 'daylight robbery'
NOV 26, 2015 LISTEN

The Africa Centre for Energy Policy (ACEP) is waging a campaign against the proposed increase in utility tariffs by the Public Utilities Regulatory Commission (PURC).

According to the Centre, the move is simply a case of power producers passing on their inefficiencies to the consumer.

The PURC has for some months now been embarking on a nationwide exercise to engage consumers on the proposed tariff increases.

But Executive Director of ACEP, Dr. Mohammed Amin Adam tells JOY BUSINESS Ghanaian consumers cannot be asked to pay more given that the current tariffs are higher than the sub-Saharan average.

The last tariff review which was done by the Public Utilities Regulatory Commission – PURC’s in March 2015 saw the generation tariff put at 9 cent per kilowatt hour.

This Mr. Amin Adam indicated is much higher than the Sub-Saharan average for the generation tariff at 4 cents per kilowatt hour.

“There are naturally differences in the cost structure because the generation mix for each country is different but the disparity is too high”.

“It is problematic because it is not cost-effective and this may be as a result of the level of the technical efficiency of the kind of generating plants that we have.

“The power is not available so if you have an installed capacity but only 70 percent of it is available, and you plan your financial sustainability on your installed power, then of course you’re going to ask for higher tariffs with lower availability of power to achieve the same level of financial sustainability and that is robbery.”

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