PURC can’t reject electricity tariff reduction – Govt

The Public Utilities Regulatory Commission (PURC) has no justification to reject government’s proposal to reduce electricity tariff, a Technical Economic Advisor at the Vice President’s Secretariat asserts.

This is because all the mechanisms that are factored into pricing have been addressed for consumers to enjoy low electricity tariff, Dr. Mutaka Alolo maintained.

“We have taken steps to review the pricing mechanisms and we know that per the policies we have done, per the achievements we have done so far…the only thing left is for PURC to implement it,” he told TV3 New Day Saturday.

Government announced electricity tariff reduction in the 2018 budget statement and economic policy on Wednesday.

For instance, Finance Minister Ken Ofori-Atta said that residential and non-residential tariff would be reduced by 13%, and 21% for high volta mines. READ MORE

Many have chided the government for jumping the gun by going ahead of the regulator, PURC, that is legally mandated to take such decision.

Critics say the pronouncement has put the PURC in a precarious state. This would definitely not be a welcoming one to the power producers also, due to government’s already indebtedness to them.

But Dr Mutaka Alolo told host of New Day, Abena Tabi, the criticisms are misplaced.

“We are going to get it” he dispelled the skepticism and insisted, “we have done what we have to do and they have to reduce the prices.”

He explained: “Realistically, pricing mechanism takes into consideration certain factors; those are the factors we have dealt with, we have dealt with the cost of producing electricity, we have dealt with prices that we even buy electricity from independent power producers.”

He said the ball is now in the court of the PURC to also do their mechanism and accept government’s proposal.

“There is no reason for PURC not to accept it, because the fundamentals are all set, when you put it into the mechanism that is what it will give you”.

By Isaac Essel | | Ghana

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