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11.02.2020 Business & Finance

We Reduced Electricity By 22%; The Only Gov’t In 4th Republic – Bawumia

We Reduced Electricity By 22%; The Only Gov’t In 4th Republic – Bawumia
LISTEN FEB 11, 2020

The Vice President, Dr. Mahamudu Bawumia is crediting the ruling New Patriotic Party (NPP) government as the first government to have reduced the electricity tariffs in the history of the Fourth Republic.

He said the 22% reduction in electricity prices in 2018 was the most significant intervention in the utility sector by the government in recent times.

Speaking at the government’s 2020 town hall meeting in the Ashanti Regional capital, Kumasi, on Tuesday, Dr. Bawumia said although the government subsequently increased electricity prices by 11.7% the following year, the average for both years still showed a significant reduction in the cost of electricity.

“[In] 2018, we reduced electricity prices by 22% and by the way, this is the first government in the history of the fourth republic that has reduced electricity prices. And in 2019, we increased the prices by 11% but when you take the net between 2019 and 2018, in net terms, since we’ve been in office, we’ve reduced electricity tariffs by 10%.”

“And this has never happened before that any government in the 4th republic and therefore it is a promise we have fulfilled,” he said.

The PURC in March 2018 announced a 10-30 percent reduction in prices of electricity effective March 15, 2018.

Residential customers had a 17.5% reduction, whilst non-residential customers enjoyed 30% cut.

The mines were also entitled to 10% reduction, with special load tariff customers also enjoying 25% reduction.

President Akufo-Addo had earlier announce the reduction at a meeting with beauticians and hairdressers two months earlier but the opposition, National Democratic Congress (NDC) in Parliament descended heavily on the president, accusing him of usurping the powers of the PURC through the “populist” announcement.

Electricity tariff changes since 2010

Data from the PURC indicates that excluding 2012, 2016 and 2017, where electricity prices were increased and in 2018 when the prices were reduced, all other years recorded an increase of at least 10 percent.

YEAR PERCENTAGE CHANGE
2010 89
2011 10
2012 0
2013 78
2014 28.36
2015 59.2
2016 0
2017 0
2018 -22.08
2019 11.17

---citinewsroom

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