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ECG starts tariff reduction

The Electricity Company of Ghana (ECG)  started the 25 per cent reduction in electricity tariff yesterday.

 

It has, therefore, reprogrammed its system for the implementation of the new tariff which has been reduced because of the  government’s subsidy for consumers.

The new subsidy will apply to all consumers of electricity in the country including prepaid or cash-based, unit-based and post-paid customers of ECG.

Review tariff

The government announced a review of the electricity tariff from 78.9 to 59.18 per cent following calls by the labour front for it’s reduction

The new price showed a 25 per cent downward review of the tariff which was expected to take effect from October 1, 2013.

This was done to change the previous tariff announced by the Public Utility Regulation Commission (PURC) on Wednesday, September 18 in which there was 78.9 per cent upward adjustment in electricity and 52 per cent in water tariffs with effect from October 1, 2013.

To cushion the effect of the tariff increases on consumers, the government agreed to pay about GH¢410 million to the utility companies to ensure a steady supply of electricity.

Subsidy application

The Divisional Manager of the ECG in charge of Regulatory and Government Affairs, Mr Daniel Azu, told journalists in Accra that a revised reckoner would be published to help customers understand the application of the subsidy when they bought recharge units at the vending points.

“Customers should note that all statutory levies including VAT, National Health Insurance Levy and street light levy, as passed by parliament, shall continually be paid by the customer as applicable,” he said.

For the prepaid customers who deposit money through e-cash, or the BXC smart cash meters, Mr Azu said the subsidy for their consumption of electricity for the month of October 2013 would be refunded.

“Consumption will be refunded to the customer at the deposit of cash from November 18, 2013. Beyond the first deposit, other subsequent deposits will be refunded at the beginning of the ensuring month.”

Explaining further, Mr Azu said,  for instance, a consumer whose monthly consumption was 70 units, which corresponded to a deposit of GH¢25, a subsidy of GH¢5.32 would be credited to the account at the first deposit of cash.

Such a consumer, he added, would receive a receipt at the vending point which would indicate the amount deposited, the subsidy applied and the total amount or credit.

Though the ECG was phasing out the unit-based prepayment metering system, the company acknowledged that few customers were still on the system.

For such customers, Mr Azu said when they made new purchases on or after Monday, November 18, 2013, the subsidy for  October 2013 would be refunded in full, in the form of units.

“For example, a customer whose consumption is 70 units would have to pay GH¢25 but due to the subsidy of GH¢5.32, the customer will now pay GH¢519.68.”

Customers on credit metering who were also referred to as post-paid consumers, would have the subsidy reflecting on their monthly bills.

Mr Azu said the monthly bill would apply to the tariff and further adjust it downward in line with the subsidy. “The bill will show what the customer is required to pay, less the applicable subsidies”.



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