GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
No Result
View All Result
Home Business

Electricity Tariffs Too High, Uncompetitive In the Sub-Region

March 29, 2017
in Business
Share on FacebookShare on Twitter

Ghana’s electricity tariffs are too high and uncompetitive for domestic and commercial consumers in the West African sub-region, according to the Deputy Minister-designate for Energy, Dr. Mohammed Anta Amin Adam.

You Might Also Like

Nana Akufo-Addo Has Won 2020 Ghana Elections with 51.7% of the Vote

Online Casino Best-Themed Games

Utilize Reliable Exam Dumps to Attain Cisco 300-320 R&S Certification Easily

“For the domestic consumer, the tariffs in Ghana is around 19-28 cents, La Cote d’Ivoire is 9 cents, Benin is 17 cents, Togo is 16 and Nigeria is 17 cents.

“But when you come to the commercial industrial consumer that is where the problem is. Ghana’s is 32.6 cents per kWh, Cote d’Ivoire is 13 cents, Benin is 19, Togo is 18 and Nigeria is 17 cents so in comparative terms tariffs in Ghana are higher in the sub-region,” he pointed.

Dr. Amin Adam made the revelation when he appeared before Parliament’s Appointments Committee for vetting Tuesday evening.

He attributed the high tariffs to lack of competitive procurement processes for power generation and obsolete power plants deployed in the country by some independent power producers among others.

This, he noted, does not only affect consumers in Ghana but also affects the generation companies if they want to take the excess to the sub-region.

The Mahama-led National Democratic Congress (NDC) administration has been accused of signing bad contracts with power producers like Ameri, leading to high electricity tariffs and possible financial loss to the state.

According to Dr. Amin Anta who is also the Executive Director of think-Tank, Africa Centre for Energy Policy (ACEP); the state is paying heavily for some of these contracts.

“…the contracts we signed and the government consent of the support agreements we signed now ‘the put-call-option agreement we signed with the companies show that the capacity will be paid for whether we use it or not. It’s a ‘take or pay’.

“So what do we do with it? It’s going to be excess capacity not producing power but consumers would be paying for it and the World Bank estimates that we would be paying about $600 million every year for capacity not producing power.

“And so if Ghana’s tariffs are higher apart from the burden it imposes on consumers, we are unable to sell off the excess in the sub-region where Nigeria is doing 6 cents to Benin per kWh of power and where we give domestic or commercial 32 cents. It doesn’t make sense for good business.”

Dr. Amin Anta said something drastic has to be done about it.

“I will support my minister to consider ways of reducing the cost of generation. At the moment, we can’t do anything about the capacity that we already have but future generation addition must take into consideration, a number of elements- Number 1: the efficiency levels of the plants must be looked at.

“Most of the plants we have are old before they come here and so in terms of efficiency, they are already suffering, availability is low and so if we begin to engage plants that have high efficiency level and therefore high availability level because of the benefits of economies of scale, the cost of generation will come down and that will impact on tariffs.

“A competitive process for procuring power, additional capacity and with that competition, I believe the cost of capacity will come down and that will greatly impact on tariffs.”

Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.

Tags: Africa CentreAmin AdamAmin AntaBenineconomyElectricity pricingelectricity tariffsenergyExecutive Director of think-TankFinancial incentives for photovoltaicsghanahigh electricity tariffsInternational taxationInternational tradeministerMohammed Anta Amin AdamNational Democratic Congress (NDC)nigeriaParliaments Appointments CommitteePhysical universePricingRenewable energy economyTarifftogoWorld Bank

Related News

Covid-19: President Akufo-Addo To Address Ghanaians Tonight

Nana Akufo-Addo Has Won 2020 Ghana Elections with 51.7% of the Vote

by ghanastar
December 9, 2020
0

Nana Akufo-Addo won Ghana’s national election, becoming president-elect at the third attempt and cementing the country’s reputation as a standard-bearer...

Online Casino Best-Themed Games

Online Casino Best-Themed Games

by ghanastar
July 9, 2020
0

Whether you like casino games or not, we can all agree that people like themes, and they express their lover...

Utilize Reliable Exam Dumps to Attain Cisco 300-320 R&S Certification Easily

by ghanastar
July 14, 2020
0

Cisco’s certifications are among the most popular credentials for IT professionals. The company is considered to be one of the...

Burkina Faso: Attack on Church Kills at Least 14

by
December 1, 2019
0

At least 14 people have been killed after gunmen opened fire inside a church in Burkina Faso. The victims were...

Next Post

Zoomlion Appeals To Government To Reduce Import Duties On Waste Collection Trucks

NPP Wishes Akufo-Addo A Happy Birthday

Categories

  • Africa & World
  • African Music Lyrics Directory
  • Business
  • Business Directory
  • celebrities
  • Computing
  • Diaspora
  • Entertainment
  • Events
  • Feature
  • Featured
  • Ghana Elections 2016
  • Headlines
  • Health
  • International
  • Internet
  • Jobs
  • lifestyle
  • Music
  • News
  • Offbeat
  • Opinion
  • Politics
  • Profiles
  • Religion
  • Security
  • Seth Terkper
  • Smart Home
  • Social Networks
  • Sports
  • Technology
  • Top Stories
  • World News

Tags

accra addo africa Association football Banks - NEC business Business_Finance chairman Donald Trump economy education Entertainment_Culture environment Geography of Africa ghana Ghanaian people government Government of Ghana Human Interest John Dramani Mahama john mahama Law_Crime mahama minister MPs elected in the Ghanaian parliamentary election Nana Addo Nana Addo Dankwa Nana Akufo-Addo National Democratic Congress National Democratic Congress (NDC) New Patriotic Party New Patriotic Party (NPP) nigeria politics Politics of Ghana president Social Issues Social Media Social Media & Networking sports United Kingdom United Nations United States Vice President War_Conflict

Recent Posts

  • Government of Ghana Unveils Official Portraits of President John Dramani Mahama and Vice President Prof. Naana Jane Opoku-Agyemang
  • Who Is the Woman (Sheena Gakpe) in Sarkodie’s Latest Hit “No Sir” and Why Everyone Is Talking about It
List of Ghana Holidays for 2020
Ghana Geocoding
Ghana Cedis Exchange API
Ghana Maps Service
Toyota Cars Auto Auction History
  • African Music Lyrics Directory
  • Business Directory
  • Diaspora
  • Top Stories

All rights reserved © 2021 GhanaStar.com

No Result
View All Result
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music

All rights reserved © 2021 GhanaStar.com