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Business News of Wednesday, 27 May 2020

Source: Laud Business

Gov’t pays ECG, VRA, NEDCo GH¢343m first tranche of coronavirus electricity reliefs

Government has paid the first tranche of the COVID-19 electricity reliefs to the respective bodies – the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo) and the Volta River Authority (VRA). in full for the month of April.

The total payment for the three bodies is GH¢343 million, Nana Kofi Oppong Damoah, Head, Communications and Public Affairs at the Energy Ministry revealed.

He said: “GH¢222m to the electricity company of Ghana NEDCo has been about GH¢35m and VRA has also received about GH¢55m to ensure that the first tranche has been paid.

“In all it is around GH¢344million that government has released as payment for COVID-19 electricity reliefs” for April.

President Nana Addo Addo Dankwa Akufo-Addo as part of measures to ease the pressure on Ghanaians posed by the COVID-19 announced the tariff cuts.

“Government will fully absorb electricity bills for the poorest of the poor, i.e. for all lifeline consumers, that is free electricity for persons who consume zero (0) to fifty (50) kilowatt hours a month for this period,” he said.

“In addition, for all other consumers, residential and commercial, Government will absorb, again, fifty percent (50%) of your electricity bill for this period, using your March 2020 bill as your benchmark,” he added.

The President explained that “if your electricity bill was GH¢100, you will pay only GH¢50, with government absorbing the remaining GH¢50.”

The three month programme will cost the country GH¢1 billion, the Minister of Energy, Mr John-Peter Amewu, announced.

He said the amount would cover 4.8 million meters across three utility companies — the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo) and the Volta River Authority (VRA).