Government does not owe us - ECG

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Tue, 17 May 2022 Source: www.ghanaweb.com

ECG proposes 148% in tariffs

PURC meets with utility service providers

Government paid of IPPs, fuel supplies, ECG

The Electricity Company of Ghana (ECG) has disclosed that government does not owe the power distribution company.

According to the General Manager for Regulatory Management at ECG, Sylvia Noshie, government paid for the Independent Power Producers (IPPs) and fuel supplies needed to aid their work, therefore, the power distribution company deducts government’s debt from this payment it made earlier.

Speaking at a public hearing for a multi-year major tariff review in Accra on Monday, May 16, 2022, Sylvia Noshie said, "Currently, government doesn't owe ECG. Government pays the IPPs and fuel supplies on behalf of ECG and what we do is that we use that amount to defray government's cost."

It would be recalled that the Electricity Company of Ghana disconnected power to some government institutions and other companies in the country for being indebted to them.

According to ECG, these debts have been accumulated over the years.

The move forms part of measures to address power challenges in the country.

Meanwhile, the Electricity Company of Ghana on May 9, 2021, demanded an increment of 148% on electricity tariffs from August 2022.

The company submitted a proposal to the Public Utilities Regulatory Commission (PURC) asking for an adjustment in electricity tariffs to cover the period between 2019 and 2022.

ECG also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC) while attributing the high increase in the Distribution Service Charges to the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs as well as the cost of completed projects.

Source: www.ghanaweb.com
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