We can’t blame high electricity tariffs on only billing system
Understandably, there is public outcry when domestic and industrial users of electricity have to pay high tariffs at the end of each month.
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High electricity tariffs take a toll on the profit margins of businesses and also the earnings of domestic users.
It is the public outcry over high electricity tariffs that has resulted in the Public Utilities Regulatory Commission (PURC) ordering the Electricity Company of Ghana (ECG) to suspend the use of the company’s billing software which has been blamed for the high tariffs that consumers have had to grapple with in recent times.
Electricity has become a very vital component of not only industrial but also economic growth everywhere in the world.
Many foreign-owned businesses in Ghana, which reeled under high tariffs and the general high cost of doing business, have relocated to other countries in the sub-region where they believe the costs are lower, thereby aggravating the unemployment situation.
Businesses that have stayed on have had to operate with very limited resources and have laid off many workers to stay in business.
The Daily Graphic, however, believes there is more to the high electricity tariffs than the ECG’s billing software. Therefore, looking at the challenge solely as a result of the billing software will be a very narrow way of looking at the issue.
One very vital component of high electricity bills has been pointed out by many stakeholders as the many taxes imposed on electricity by the government. These include the National Health Insurance Authority (NHIA) levy; the 17.5 per cent Value Added Tax (VAT); the 10 per cent levy on every kilowatt per hour consumed and a GH¢7 flat rate on every meter for all consumers, all of which have been brought about by the Energy Levies Act.
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We urge the government to reduce or completely scrap the taxes and levies on electricity if it intends to give consumers a respite. Targeting the billing software of the ECG would not achieve much.
Meanwhile, the ECG is also required to put its house in order by making sure that its billing system does not overburden consumers.
We believe consumers are also required to pay higher tariffs now because we have opted for thermal energy, which is a more expensive power source.
The public cannot extricate itself from blame for the recent trend of high tariffs. We have virtually ‘killed’ all our water bodies and we are paying a high price for that.
Although the Bui Dam was built to complement the production by Akosombo Dam, that has not happened, as the level of water in the Bui Dam has barely supported power generation.
The Daily Graphic urges the government to look critically at all the factors that have contributed to hikes in electricity tariffs in recent times to lessen the burden on consumers and also focus on developing renewable energy sources to ensure sustainability of electricity generation in the country at affordable rates.
Whatever the concerns, we think the review of the billing software will bring relief to business and domestic consumers of power who have complained of suffocating tariffs.