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IES alleges calls for increment in tariff prices
- The increment to increase revenue for GRIDCo, ECG and NEDCo
- IES disagrees with further tariff increments
The Institute of Energy Security (IES) has called the calls from market participants and stakeholders for an increase in electricity tariff, unnecessary. The proposed increment will enable the Ghana Grid Company (GRIDCo), Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) to improve the transmission and distribution network for reliable electricity supply.
In the statement released, the IES says, ”We are not in normal times. Jobs have been lost, pay-cuts has been occasioned and money cannot be borrowed easily; thanks to COVID-19. The least distributors can do is to make available consistent but reliable electricity to consumers and not to introduce additional financial burden to consumers”.
The IEC also states that the allowable loss benchmark approved by the Public Utility Regulatory Commission (PURC) is too high. The effects of the high loss margin is the loss of vital revenue to the inefficiencies of these companies. In 2019 alone, the sector saw a combined transmission and distribution loss total of $725 million.
IES warns that any attempt to increase the cost of electricity without addressing the inefficiencies will result in a sector with an unreliable electricity supply.