Accra, Ghana
36°C

GSE Feed

Forex Rate

AGI meets PURC over tariff reduction

AGI-Pix

The Association of Ghana Industries (AGI) wants regulators in the power sector to clamp down on illegal users of electricity in order to reduce the rising operational losses.

The AGI believes this should afford stakeholders the opportunity to reduce the tariff for genuine users.

The comment follows negotiations with the Public Utility Regulatory Commission (PURC) to reduce the cost of power for industry.

The meeting is scheduled for Monday, February 12, 2018.

This is also in fulfillment of government’s assurance of reducing the cost of power to consumers.

An eventual reduction should see the cost of power for industry for instance reducing by about 13 percent.

The Deputy Director for Policy and Research at the AGI, John Defor explained to Citi Business News the reduction should bring respite to businesses.

“With the current tariff levels, it is a fact that we are not competitive; so we need to look at the indicators and these include; the exchange rate, the crude oil prices, commercial or technical losses. We believe if we really look at the indicators, there are areas we could work on.”

“For example, the losses, if distribution losses are about 23 to 24 percent, something should be done about it because the consumer will be made to pay for that. If we take transmission losses as well, which is hovering at 3 or 4 percent on the average, the consumer pays,” he added.

He spoke to Citi Business News at the AGI’s stakeholder meeting on the future of Ghana’s Power sector.

The meeting is held in anticipation of a major change in the electricity tariffs and how businesses could position themselves so as to cater for it in their operations.

The rising cost of power has for some years now, dominated as one of the most critical challenges facing industries.

The issue has also been compounded by the erratic power supply that the country faced between 2012 and 2016.

Already, President Akufo Addo has announced that artisans and other small scale businesses comprising barbers, fashion designers, hair dressers, among others are tipped to pay less for power effective February 2018.

The PURC is yet to conclude its discussions with all categories of users to be affected and give the go ahead for the reduction in the cost of power.

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

Citi Business News