The Public Utilities Regulatory Commission (PURC) has announced a staggering electricity tariff reduction.

The decision comes after an extensive stakeholder consultations, detailed technical analysis of utility tariff proposals and consideration of inputs and concerns of consumers.

Per the summary of the approved percentage reductions residential consumers will enjoy 17.5% reduction with Non-Residential consumers enjoying 30% with Special Load Tariff Customers (LV, MV & Hv and Mines enjoying 25% and 10% respectively.

The reduction which takes effect on March 15, 2018 is in line with government’s pledge in the 2018 budget statement.

The Commission said in a statement announcing the reduction, the key objectives in the tariff review were “to ensure efficient and equitable tariffs; and to ensure that tariffs are relevant to the current socio-economic environment.”

It also added that it took into account major considerations including the impending Private Sector Participation (PSP) Concession within the Electricity Distribution Sector.

The cost of power has been a source of worry to consumers and president Akufo-Addo promised during the 2016 electioneering that he would ensure the prices are reduced should he come into power.According to him, the reduction will boost the industrial sector noting that the effects of the rapidly emerging foreign markets on the Ghanaian economy require that government introduces policies that would offer all the help Ghanaian industries need to stay competitive.

The PURC thus in January began the process for the examination and approval of electricity and water tariffs for 2018.
The move, according to it, was in accordance with the PURC Act, 1997 (Act 538).

A statement issued Tuesday January 30 and signed by Mami Dufie Ofori, Executive Secretary of the Commission Tuesday said: “The 2018 Major Tariff Review commenced by way of soliciting inputs from all stakeholders of the Commission and the general public.”

This was after it had received proposals from the Utility Companies: Volta River Authority (URA); Ghana Grid Company Limited (GRIDCo); Electricity Company of Ghana (ECG); Northern Electricity Distribution Company (NEDCo); Ghana Water Company Limited (GWCL); Enclave Power Company (EPC), Ghana Chamber of Telecommunication including the Government of Ghana.