Electricity tariffs to go down by 13%

By Kwabena Owusu-Ampratwum

Electricity tariffs for domestic consumers could go down by as much as 13 percent if proposals by the government in the 2018 budget are implemented.

Accordingly, government has reviewed the tariff setting methodology and cost structure of power production, resulting in recommendations that will be made to the PURC for consideration.

The move according to Finance Minister Ken Ofori-Atta is in line with a promise by the President that the NPP government would ensure that electricity tariffs are reduced.

Presenting the 2018 budget to parliament, he said to give relief to the poor whose individual consumption actually falls in the subsidised life-line category but who live in a compound house, the existing 4-tier tariff classification of residential consumers will be collapsed into Lifeline and Non-Lifeline consumers in phases.

On the basis of these interventions, he added, if government recommendations to Public Utilities Regulatory Commission, PURC, are accepted, consumers will be expected to benefit from reductions in electricity tariffs. The expected average tariff reductions across various customer categories will be as follows: