Graphic Business News

AGI reiterates calls for electricity tariff reduction

By: Nii Martey M. Botchway
Category:
Mr Seth Twum
Mr Seth Twum

THE Association of Ghana Industries (AGI) has reiterated its calls for the government to reduce the electricity tariff for local industries in the country.

This is to ease the burden on the sector and enable local industries compete effectively both on the local and global market.

In an interview with the GRAPHIC BUSINESS, the Chief Executive Officer of the association, Mr Seth Twum Akwaboah, said although the association acknowledged the government’s efforts to reduce electricity tariffs for industry, it hoped the reduction would happen soon.

He was speaking on the sidelines of a stakeholders’ forum on Power Outlook for 2018 which was organised by the AGI.

“We live in a competitive environment. We have a lot of products coming from abroad so we have to compete so if it is coming up as a major concern, we have to address it,” he explained.

He said its assessment identified the high cost of energy as one of the main challenges of the local industries.

Imbalance 
According to Mr Akwaboah, considering the current power regime, it was evident that residential consumers
consumed more power than the industrial sector.

He indicated that instead of subsidising residential tariffs, there was the need to prioritise that of the industry.

“Peak hours have changed to nights compared to previously where peak hours were between mid-mornings to afternoon. This means that industry was now consuming less power than residential,” he stated.

Engagements
The CEO pointed out that the Public Utilities Regulatory Commission (PURC), which was the regulatory body for tariffs, had written to the AGI and engagements with the
PURC had begun in earnest.
“I am sure something positive will come out soon,” he noted.

He maintained that AGI was committed to working with the PURC to find a lasting solution to the energy pricing for industry in the country.

“When negotiations are done, it is the expectation of the AGI that tariffs will come down, especially for industry as the high cost of electricity tariffs continues to render industry uncompetitive,” he said.

About forum
The forum, which was organised by the AGI, was aimed at discussing issues concerning the energy sector and also takes inputs from its members to help in the review.

It was also meant to engage industry to understand what transpired in the generation, transmission and distribution of power.