Ghanaian Member of Parliament wants electricity prices reduced; here are his reasons

The Member of Parliament for Damongo, Adam Mutawakilu, has called on the Public Utilities Regulatory Commission (PURC) to reduce electricity tariffs by January 1, 2020.

MP for Damango, Adam Mutawakilu

He explained that he is making this demand following the successful switching of fuel for the Karpowership generating plant from heavy fuel to gas.

President Akufo -Addo turned on the valve the past weekend. This will supply natural gas to the 450-megawatt Karpowership which was relocated from Tema to the Western Region.

The government looks forward to saving about $40 million monthly with the switching of fuels for the plant.

Nana Akufo-Addo said “We are talking significant sums of money over the course of the next 10 years… It helps bring down the cost of electricity, saves our country…”.

On September 30, 2019, the PURC announced a 5.94% increment in electricity and 2.22% for water across board effective October 1, 2019.

The PURC at the time explained that the increment was necessitated by the Ghana Cedi-US dollar exchange rate, inflation, price of crude and natural gas, fuel mix, power purchase cost, and electricity cost.

Mr Mutawakilu who is a ranking member of the mines and energy committee said Ghanaians since fuel for the power plant has been switched Ghanaians deserve a reduction in electricity tariffs.

“What we should be looking at is, what is the effect today. We should expect the president, if he is candid enough, by 1st January [2020] there should be a reduction in electricity tariff.”

He added that since the Karpowership is no more consuming heavy fuel “that was more expensive, it is prudent for the government to reduce tariffs. Now that it’s been switched to gas that is less expensive.”

He explained further that the new development must be inputted into the Automatic Adjustment formula for electricity tariffs.

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