Ghana’s electricity tariffs projected to rise by 60 per cent as a new company takes over the operations

The rise is due to reasons that, the operations of the Ghana Electricity Company ((ECG) will be handed over to new managers.

According to the Minority Parliamentarians of the country, the ECG has accumulated huge debts since the current government took over.

They said the government imposed policies that were not beneficial to the company hence resulting in the accumulation of the huge debt.

The Minority Spokesperson on Energy, Adams Mutawakilu who spoke to reporters revealed that the ECG has accumulated debts which are ballooning towards $400 million. This, therefore, will force the new management to raise the tariffs.

Mr Mutawakilu said the company is in crises because of the government’s decision to reduce electricity tariffs the previous year.

” The reduction was political reduction and anytime you have political reduction then liabilities accrue and the liabilities will force you to increase it more than expected,” he explained.

Meralco Consortium takes over ECG

Meralco Consortium is reported to take over the operations of the Electricity Company of Ghana (ECG).

According to the Millennium Development Authority (the company that was responsible for the handling over the operations, investment and management of ECG to Meralco), the deal was done under the Private Sector Participation of the Power Compact II Agreement of the country.

The processes of the takeover were done in April last year following the completion of the international competitive procurement process and evaluation of the proposals received for the ECG Concession.

The takeover will commence on February 1 this year.