The Public Utility Workers Union (PUWU) has  challenged president Mahamas claims that government is not subsiding electricity.

President Mahama on Wednesday denied reports that his administration has introduced electricity subsidies to cushion Ghanaians.

READ MORE: Gov't reduces cost of electricity

Addressing Muslims during this year's Eid al-Fitr at the Independent Square, president Mahama said the ECG is merely realigning the billing system to make it easier for consumers to know the amount of power they are consuming.

“It is not a subsidy,” president Mahama said. “It is a realignment of the billing system that makes it possible for us to be able to know how much we are spending on electricity.”

His comments contradicted an official statement by the Electricity Company of Ghana which announced the the implementation of “Utility relief” to consumers.

The ECG statement added: "The new reckoner incorporates the directive for ECG to make the applicable electricity rate for 0-50 units of consumption inclusive so that all residential customers will enjoy the rate for lifeline customers. It also provides a subsidy which is energy based for industrial and commercial customer.”

Reacting to the president's comment on Accra-based Starr FM Thursday, Deputy General Secretary of PUWU said until there is a contrary statement from the one the ECG put out, they are going to implement the subsidy.

“Until there is an official communication to the contrary, we are going by the statement ECG put out and that statement was prepared in consultation with both the PURC and the ministry of power, unless they [government] come out to say something different negating what ECG put out," Michael Nyantekyi said Thursday.

READ MORE:ISODEC rejects 'insincere' gov't subsidy on electricity“An official statement from ECG had come out and if government wants us to get any different position, contrary to what ECG has put out then we need to see an official statement, we will not take the oral pronouncement on this,” he added.