Stable Power Remains A Mirage without Realistic Tariffs – Edward Bawa

The Minority in Parliament has warned that government risks running Ghana’s energy sector aground if the populace is not made to pay realistic charges for the power we consume.

The Member of Parliament for Bongo and a former Communications Consultant with the Energy Ministry, Edward Bawa disclosed that players on the energy supply chain are reeling under serious financial challenges with the National Grid Company (GridCo) projected to make losses of some Gh¢300 million by end of this year.

Speaking to host Julius Caesar Anadem on the Ultimate Breakfast Show, Mr. Bawa explained that the Akufo-Addo led government made the worst mistake with its 17 per cent reduction in utility tariffs without rather reducing the taxes on utility charges to the public.

“In 2016 you would recall that the President stood at Mantse Agbonaa and said electricity bills are more expensive than rent and they reduced the tariffs by 17%. What it meant was that the tariffs were no longer cost reflective.”

“I was in favour of reduction of tariffs, however where we should have been reducing tariffs was not the energy charge for the generation of the power, the distribution charge which is used for distributing the power and the transmission charge which goes to the power transmission agencies”, he opined.  

He continued: “Government decided to keep the taxes, which we do not even know what they are using it for and rather reduced the energy charge by 17% and that is what is causing the problem.”

The Bongo legislator cautioned that the country should not expect stability in power supply if government refuses to convene a meeting with the Public Utilities Regulatory Commission (PURC) immediately, to realign the tariffs.

By: Ghana/ Heathcote – Fumador