Why Should Ghanaians Complain About Extra 10% Tariff Increment? - ECG Quizzes

The Electricity Company of Ghana appears bemused by consumers raising hell over additional charges on electricity tariffs which came to light this week.

ECG says the increment is meant for developmental projects and sees nothing wrong for government to slap Ghanaians with additional taxes to develop the nation.

On Thursday, it was revealed that power consumers will be charged 69% in electricity tariff instead of the 59.2% recent upward adjustment announced by the Public Utilities and Regulatory Commission (PURC).

Documents in possession of Peacefmonline.com clearly indicates that apart from the 59.2% increase, PURC directed the service provider, to charge an additional 10%, resulting in a cumulative hike of 69% beginning 1st January, 2016.

A letter signed by the Executive Secretary of the PURC Samuel Sarpong states that the charges comprise a 5% increase approved by Parliament for a street light levy and another 5% billing for the national electrification charge.

When news of the additional became public, Ghanaians hit the roof in anger calling the government and PURC insensitive and defunct.

But Public Relations Manager for the ECG, William Boateng, believes the increment is in order.

Explaining why his outfit is charging an extra 10% more instead of the 59.2% recent upward adjustment announced by the PURC, in an interview with CITI FM, he said “I do not understand the reason why most Ghanaians are bitterly complaining about the additional 10% increase in electricity tariffs since it was publicly announced by the company.” 

According to him, the Energy Sector Levy Act (Act 899, 2015) deals with this; “Public lightening levy which is 5% per kilowatt hour of electricity charged on all categories of consumers, would be collected by the ECG and payment would be made to the Ministry responsible for power and electricity distribution companies.”  

The purpose for this particular levy is to support payment of energy consumed by traffic lights, street lights, public lights and highways to support investment and maintenance for these sectors by the Metropolitan Municipal and District Assemblies and would also be used to cater for replacement of street lights destroyed by hit and run motor vehicles, he said.

Additionally, he told ‘Eyewitness News’ that the other half, is for National Electrification Scheme Levy, which is also 5% per kilowatt hour of electricity charged on all categories of consumers and its purpose is to provide funding support for national electrification programmes to improve access to electricity, under ECG collection. It would be paid to the national electrification fund, which has effectively been created.

So basically these are the two levies which have increased the cost of electricity by another 10% effective 1st January 2016.

He added that Ghanaians should take note of these increase and stop blaming the ECG for stealing their units.