High electricity tariffs: ACEP recommends concentration on bottlenecks

| Updated Nov 25, 2017 at 5:33pm



The Africa Centre for Energy Policy, ACEP is calling for reliable sources of funding for the Free SHS Policy.

The centre says before the free SHS policy, Annual Budget funding Amount allocation to the education sector was largely focused on capital expenditure.

The Centre says while it is important to recognize ABFA support to the free SHS policy for 2018 and beyond, it is equally important to stress on the need to clearly identify reliable sources of funding to complement the ABFA.

This was contained in a statement issued in Accra by the Executive Director of the Centre, Benjamin Boakye.

In a ten page document, the centre gave various analysis of its expectations of government in the 2018 budget.

ACEP recommended that the government should pass the promised Mineral Revenue Management Act to create additional sources of funds from solid minerals to finance the free SHS policy.

The Centre also welcomes government’s proposed reduction of electricity tariff by 13 and 21 percent for domestic and industrial consumers.

According to ACEP, although the proposal is timely, it will put the Public Utility Regulatory Authority (PURC), the body mandated to consider the review, in a tight corner especially when the approved tariff does not tally with government’s proposal.

ACEP in its analysis of the budget in relation to the energy and oil and gas sectors said the situation can weaken the independence of the PURC.

ACEP says it is challenging to see the budget prompting the level of reduction before PURC does its job of reviewing the tariff.

This puts PURC at war with public expectation of what government thinks is reductions that should happen.

ACEP recommends to government to focus on how to reduce the bottlenecks that contribute in making electricity tariffs too high.