Seth Terkper, Former Finance Minister has commended the government for affirming his commitment to carrying out social interventions that would improve the well being of the citizens.
“I think we should give some credits and compliments where it is due because [the decision to reduce power tariff] involves a lot of work. I know some renegotiations were done, I know some work was done,” he told show host, Paul Adom Otchere on Metro TV’s current affairs programme, Good Evening Ghana,
According to Mr Terkper, although there had been ongoing efforts by the previous administration to reduce the cost of electricity, it was worth commending the economic management team and the Energy Minister for taking steps to reduce the cost of electricity.
The 2018 budget statement presented to Parliament by Finance Minister, Ken Ofori-Atta, on Wednesday, November 15, 2017 reveals government's proposed power tariff cut plan by as much as 13% for some category of users.
On the basis of these interventions, if government’s recommendation to PURC are accepted, he said consumers would be expected to benefit from reductions in electricity tariffs.
The expected average tariff reduction across various customer categories will be as follows:
Average reduction for residential 13 per cent
Average reduction for non-residential 13 per cent
Special load tariff low voltage 13 per cent
Special load tariff medium voltage 11 per cent
Special load tariff high voltage 14 per cent
Industry - High Voltage mines 21 per cent
The Former Finance Minister in the erstwhile President Mahama's administration also explained that the Energy Minister, Boakye Agyarko, deserved commendation because many of the negotiation that resulted in the eventual reduction of the power tariff would have to be spearheaded by him.
For four years from 2016, the country was plunged into a debilitating power crisis that culminated into the unpopular load shedding locally called ‘dumsor’.
The situation affected many businesses.
There was the loss of jobs, reduced economic output and the loss of consumer and investor confidence in the economy.
In an effort to end the ‘dumsor’ the John Mahama-led administration resorted to emergency measures which drove the price of power astronomically high.