Business News Fri, 9 Mar 2018
The reduction in electricity tariffs for both residential and commercial establishments, will bring a huge relief to private businesses, the Private Enterprises Federation (PEF) has said.“The Governing Council of PEF, together with its member associations and chambers, is very elated and would like to express its profound appreciation to the government and the Public Utilities Regulatory Commission (PURC), for the reduction of electricity tariffs,” a statement by PEF said.
“The march towards advocating for the creation of conducive business environment to promote a profitable, competitive and sustainable private sector in Ghana has been given a huge boast by the government and we believe this will continue,” the statement, signed by PEF’s CEO, Nana Osei Bonsu, added.
Per the new electricity tariff regime recently announced by government, residential consumers will enjoy a 17.5 percent reduction and non-residential/ businesses 30 percent. Players in the mining sector will also experience a 10 percent reduction, with 25 percent savings going for Special Load Tariff Customers (LV, MV &HV).
The statement further described the decision, which will take effect from March 15, 2018, as laudable and that it will have a cascading effect throughout the economy.
Among other things, it said, it will impact positively on operations of businesses by helping reduce operating and production costs, and by extension contribute to reducing the cost of doing business in the country.
The federation said it will also help improve the competitiveness of Micro, Small and Medium Enterprises (MSMEs) in the country.
“This bold action, coming on the back of progressive reduction in the rate of inflation, collectively constitute strategic efforts in the right direction that will inure to the benefit of Ghanaians by easing the cost of living and attendant improvement in livelihoods.
Finally, PEF and its member associations and chambers encourage the Government to make all efforts to bring down the cost of borrowing (interest rate) and also build a pool of long-term funding to support private sector investments,” it added.