Ghana Employers want reduction in electricity tariff

The Ghana Employers Association (GEA) has told Citi Business News it will push for a substantial reduction in the electricity tariff in the 2018 national budget.

According to the Association, cost of power to businesses in Ghana is among the highest, compared to other West African countries.

The Minister of Energy, Boakye Agyarko has already hinted that government will reduce electricity tariff next year.

Speaking to Citi Business News after an Annual General Meeting, the Chief Executive Officer of the association, Mr. Alex Frimpong said its members will dialogue with government for their view to be imputed in the 2018 budget.

“If you listen to the speech of the president, he indicated that all over the world there is price discrimination in favour of businesses. The price of power is always discriminated in favour of businesses, because of the multiplier effect of what businesses can use with power,” he noted.

Mr. Frimpong noted that it is important to make power affordable for enterprises since it is a critical input of cost of production.

Citing some examples, Mr. Frimpong stated that Ivory Coast and other West African countries are working to get cost of power reduced for industry and enterprises.

“It is an important move that will bring into focus the need for price discrimination in favour of enterprises. Given the negotiation, we must also understand the cost of production of power and how it affects us then we can draw the line”.

He stated that the GEA will work will the Ministry of Finance to push for a reduction in the next budget.

Source: Citi Fm

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