The Association of Ghana Industries (AGI) has applauded government and the Public Utilities Regulatory Commission (PURC) for taking the bold decision to bring down the cost of power for both residential and non-residential consumers.
The association, in a statement signed by its president Dr. Yaw Adu Gyamfi, expressed optimism that the reductions will open up new prospects for businesses in the country and make the economy more competitive.
“While awaiting details of the gazette tariffs in the coming days, AGI is optimistic that the reductions will open up new prospects for businesses and accrue to our competitiveness as a country,” the statement read.
It added: “We look forward to the new tariffs taking effect from March 15, with the right billing systems put in place to ensure smooth implementation”.
The Public Utilities Regulatory Commission (PURC), last week, announced a general reduction in electricity tariffs effective March 15, 2018.
Residential customers are to enjoy a 17.5% reduction, while non-residential customers will see their tariffs cut by 30%.
Those in the mining sector have also been given a 10% tariff cut, and a 25% cut for Special Load Tariff Customers (LV, MV & HV).
According to the PURC, the decision was arrived at after extensive consultations with stakeholders in the sector, as well as detailed analysis of proposals tendered in by companies in the power distribution chain.
The high cost of power in the country has remained the number-one difficulty facing businesses in the country since 2015, according to the AGI’s Business Barometer reports.
Consultations on electricity tariffs and calls on government to reconsider the current tariff levels have since been a major advocacy agenda – and per the statement, the AGI is excited that government has paid attention to a key concern of its members.
The AGI therefore sees the tariff reductions as a welcome gesture, especially coming on the heels of stakeholder consultations: saying “electricity drives industry and all forms of economic activities”.
The AGI indicated that it will continue to dialogue with the power sector regulators to ensure utility rates for industry remain competitive.