Minority Spokesperson on Energy, Adams Mutawakilu, has revealed that, there is a possibility of electricity tariff being increased by a percentage of 60, as new managers are compelled to do so, due to the drastic GH¢2billion increment of Electricity Company of Ghana(ECG) debt.
According to him, the energy sector is in trauma as a result of the Electricity Company of Ghana’s enormous increment of debts, which he censures the government’s choice to diminish utility tariff in the country.
Speaking in an interview on Joy News, Minority Spokesperson on Energy, Adams Mutawakilu, stated that, the reduction of electricity tariff last summer was politically influenced, resulting to the debt increment of ECG. This result, accruing from liabilities will compel the new manager to increase tariff to enable them carry out operations at the company.
Millennium Development Authority (MiDA) awarded the operations, investment and management of ECG to Meralco Consortium in April last year following the completion of international competitive procurement process and evaluation of the proposals received for the ECG Concession.
Meralco Consortium which is led by the Manila Electricity Company of Philippines, won the bid to take over the operations of ECG and has since garnered majority share in Power Distribution Services (PDS) Ghana Limited which is set to take over from February 1, 2019.
Mr Martin Eson-Benjamin, the Chief Executive Officer (CEO) of MiDA, who made this known at a media stakeholders’ engagement in Accra, said all the interested parties and three agreements to the contract had been signed, while Parliament had also approved the deal.
Minority Members of Parliament are urging the Ghanaian citizen to embrace the 60 percent increase in electricity tariff as a new manager takes over operation of the Electricity Company of Ghana (ECG).
By: Gerrard Israel
