The Minority in Parliament is warning that government risks running Ghana’s energy sector aground if the populace is not made to pay realistic charges for the power consumed.
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 GRIDCo projected to make losses of some GhC300 million by end of 2019.
Speaking on the Ultimate FM’s Breakfast Show, Mr Bawa explained that the Akufo-Addo government made the worst mistake with its 17% reduction in utility tariffs without rather reducing the taxes on utility charges to the public.
“In 2016 you will 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.
“Government, however, 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,” Bawa said.
He cautioned that the country should not expect stability in power supply if government refuses to convene a meeting with the Public Utilities Regulatory Commission immediately, to realign the tariffs.