Life StyleNews

Subsidizing electricity tariff could worsen power sector challenges – ACEP

The Africa Centre for Energy Policy (ACEP) has said the government’s decision to subsidize electricity tariff could worsen the challenges facing the power sector.

ACEP, in a statement, pointed out that although the move is “well-intentioned to support Ghanaians, particularly the poor and vulnerable”, it could “endanger the sustainability of the power sector.”

ACEP further pointed out that the tariff is highly regressive and poorly redistributes national resources in favour of the rich.

The government says it will fully cover the bills of low-income consumers of electricity in the country for April, May and June 2020 as the country battles the novel coronavirus disease which has infected 566 people.

The remaining consumers who fall outside of this category will enjoy a 50 percent reduction in the cost of electricity for the same period.

ACEP among other things urged government to scrap to the 50% reduction in electricity tariffs but make the lifeline consumption free for all.

Source: Fiilafmonline/CitiNews

Related Articles

Close