CUTS Ghana is calling on the General public Utilities Regulatory Fee (PURC) to review electrical power tariffs for all courses of electricity people to replicate the existing price of technology in the electrical energy electric power blend.
In a statement unveiled on Friday, the Country Director of CUTS Ghana, Appiah Kusi Adomako stated, “In the light-weight of the slipping price ranges of the critical input gas for energy technology in the entire world market, it is fair and acceptable for the PURC to contemplate an speedy evaluation of electrical power tariffs to give reduction to corporations and buyers. From the final overview of tariffs when took outcome from July 1st, 2019, the Fee produced their tariffs dedication primarily based on some key assumptions which have adjusted significantly.”
Mr Kusi Adomako additional, “With regard to Pure Gas and Significant Gas Oil (HFO) as fuel for the generation of electrical electricity for the 2019-2020 tariff time period, the Fee authorised a US$ 6.08/MMBtu as the Weighted Common Sent Cost of Gas and US$ 390/Metric Tonne for HFO.”
He reported “now with the slide in desire for crude oil and normal gas, the present-day price for natural gasoline has fallen from $6.07/MMBtu in July 2019 to $1.8/MMtu as of right now. At the identical time, crude oil has fallen to about $20 for every barrel”.
“According to the Ministry of Strength, the total put in potential for present vegetation in Ghana is 4,132MW consisting of Hydro 38%, Thermal 61% and Solar a lot less than 1%. Considering the fact that about two-thirds of Ghana vitality blend is from thermal resources which use both pure gasoline or crude oil which has seen a drastic drop in selling prices from the prior evaluation, the Commission should really as a make any difference of precedence take into consideration tariffs evaluate,” he included.
Decreasing the electrical energy tariffs is not a humanitarian or an act of charity to the customers of electricity, but alternatively it is grounded in mathematics, accounting and economics rules.
Mr Adomako reported “all more than the world, nations around the world that depend on natural gas and fuel have witnessed price ranges of energy going down and for that rationale, Ghana can’t be an exception to this noticeable reality. As it has often been the situation for tariff review in Ghana whereby utility providers submit proposals to the PURC for upward evaluate, these days, we the individuals of electrical energy is in Ghana are contacting on the Commission to act on the curiosity of electrical power buyers and review rates down.”
Mr Appiah Adomako was hopeful that a well timed reduction in the tariffs would help companies and individuals who would have been impacted heavily by the coronavirus. With most men and women at home on minimized cash flow and enterprises functioning beneath capacity as a consequence of the world wide pandemic, tariffs reduction would go in a prolonged way to mitigate their plight.
CUTS International is an unbiased non-financial gain economic plan research, advocacy and potential developing consider tank with regional centres in Accra, Lusaka, and Nairobi, Geneva, Delhi, Jaipur and Washington, DC.
CUTS functional regions are in trade and improvement, regional integration, competitiveness coverage, financial and investment decision regulation as very well as purchaser training.