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Government must absorb ECG’s 148% upward adjustment - NDC Communicator

Ecg Logo Min Electricity Company of Ghana logo

Fri, 13 May 2022 Source: atinkaonline.com

The Head of Communication, Zongo Caucus of the National Democratic Congress (NDC), Alhaji Mohamed Naziru, has suggested that government absorb the 148% upward adjustment proposed by the Electricity Company of Ghana (ECG).

The ECG made a proposal to the PURC, requesting it to increase electricity tariffs by up to 148 percent covering 2019 to 2022.

The state power distributor also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).

They attributed the high increase in the Distribution Service Charges.

“The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase on the current DSC1 in 2022 and an average increase of 7.6% year on year from 2023 to 2026.”

The management of ECG also indicated that its financial sustainability is important as it impacts the entire energy sector.

“Over the next five years, the DSC will need to increase consistently (average of 7.6%) to cover distribution cost. It is expected that the approved BGC would correspond with the commercial terms of PPAs (Power Plant Agreements),” it added.

At about the same time, the Ghana Water Company Limited also demanded a 334% increase in tariff in their proposal.

Speaking on Atinka TV‘s Morning show, Ghana Nie, with Ekourba Gyasi Simpremu, Alhaji Mohamed Naziru, said since the government catered for electricity and water during and after the lockdown when covid-19, it can as well cater for the increment because Ghanaians are already facing hardship and cannot bear the cost when the electricity and water bills increase.

Meanwhile, he complained that there was no day one will not see dirt in their tap water, especially those who get water from Weija.

He recalled that the government stated that galamsey was affecting the water bodies, questioning why in Accra the water looks dirty even when there is no mining activity in Accra.

Alhaji Mohamed Naziru also noticed that most of the time, water does not even flow as expected, saying that water shortage has become rampant, stating that there are issues that need to be addressed properly instead.

Source: atinkaonline.com