Civil society groups kick against electricity subsidy

Some key Civil Society groups in the energy sector are calling for the removal of subsidies on electricity tariffs with immediate effect.

The Electricity Company of Ghana on July 1 reintroduced subsidies to cushion low-level consumers of electricity and to support industrial and commercial consumers of power.

But the Consumer Protection Agency says the reintroduction of this subsidy is unnecessary because consumers will bear the cost in the future. Head of Programs and Research at the Consumer Protection Agency, Nana Prempeh Aduhene has been speaking to 3FM.

“What we are doing is that we have just received the full document, we are studying the document and then we will come out with our explanation… what we have been able to achieve under the saving fund has come to nothing because this thing that we are doing we will pay it in the future.

It is not something that is for free, we have to pay in future; so what we have talked about, the issue is rather, reduce the taxes and let the subsidies stay”. The Executive Director of KITE Ghana, Ishmael Agyekumhene thinks Government is rather compounding the problems of the energy sector by the reintroduction of the subsidies.

“There is some relief and as a consumer, I should technically be happy because there are some reliefs depending on which category you fall in, but we are compounding the problem the sector is facing…I am surprised that it was the ECG that came out to announce this so-called package because they are contradicting themselves”.

He therefore questioned how the government will be able to provide cash injections into these subsidies. “If government says they are going to absorb subsidy up to the tune of 300 million Ghana cedis, the question is has the government made any provisions about that?” he asks.