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Business News of Tuesday, 10 December 2019

Source: 3 News

MP demands reduction in electricity prices

Member of Parliament for Damongo, Adam Mutawakilu, is demanding a reduction in electricity tariffs by January 1 following the successful witching of fuel for the Karpowership generating plant from heavy fuel to gas.

President Akufo -Addo at the weekend turned on the valve to supply natural gas to the 450-megawatt Karpowership which was relocated from Tema to the Home Port of the Western Naval Command at Sekondi in the Western Region.

Government is seeking to save the nation 40 million dollars monthly with the switching of fuels for the plant.

Nana Akufo-Addo said “We are talking significant sums of money over the course of the next 10 years… It helps bring down the cost of electricity, saves our country…”.

The Public Utilities Regulatory Commission (PURC) on September 30, 2019 announced a 5.94% increment in electricity and 2.22% for water across board to take effect from October 1.

The increment was necessitated by the Ghana Cedi-US dollar exchange rate, inflation, price of crude and natural gas, fuel mix, power purchase cost and electricity cost.

Commenting on the development on Monday, Mr Mutawakilu who is a ranking member of the mines and energy committee said Ghanaians should be expecting a reduction in electricity tariffs in the country on the back of the switching of fuels for the power plant.

“What we should be looking at is, what is the effect today. We should expect the president, if he is candid enough, by 1st January [2020] there should be a reduction in electricity tariff,” he told journalists

He explained that since the Karpowership is no more consuming heavy fuel “that was more expensive, it is prudent for the government to reduce tariffs.

“Now that it’s been switched to gas that is less expensive,” he said, that must be inputted into the Automatic Adjustment formula for electricity tariffs.

Meanwhile, he has commended former president John Mahama for his initiative in the exercise which he said has begun yielding positive results for the nation.

The Karpowership, he said was an initiative of the Mr Mahama’s government which first brought in a 225 megawatts of emergency plant at the peak of Ghana’s energy crisis.

“He also initiated this ENI gas project where he secured World Bank support of 7 billion dollars. Today it is yielding results,” he stated.

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