Pulse.com.gh logo
Go


Power Supply in Ghana ECG concession won't result in high electricity tariffs - MiDA

In a press statement Tuesday, MiDA said: “It is also not the case, as alleged in the press statement of PUWU that high tariff will result from the concession agreement.

  • Published: , Refreshed:
play ECG

The Millennium Development Authority says it is not true that the privitisation of the Electricity Company of Ghana (ECG) will result in high electricity tariffs.

In a press statement Tuesday, MiDA said: “It is also not the case, as alleged in the press statement of PUWU that high tariff will result from the concession agreement. On the contrary, improved performance and reduction in the current loses of ECG should facilitate progressive lowering of tariff."

The press statement follows protest from the Public Utility Workers Union (PUWU) over the decision of government lease ECG to a private company for 25 years as part of the second compact of the Millennium Challenge Account signed by the Government in August 2014.

The statement noted that the concession agreement available for ECG was done with integrity, transparency and in good faith as all stakeholders were consulted.

PUWU has warned of high electricity tariffs should the government privatise ECG.

Deputy General Secretary of PUWU, Michael Nyantakyi, said the recent hikes in energy bills was designed toward making ECG attractive for the private investor.

READ MORE
ECG staff threaten nationwide blackout on Friday
Tema ECG staff demonstrate against 'Political Meters'
PUWU warns of high electricity tariffs if ECG is privatised

 

At a conference last week, he further warned that the concession is not the best option to bring reforms to make ECG more efficient and profitable.

He said: "This policy is not the best option to bring reforms to make ECG more efficient and profitable. We have already articulated our views and suggestions in our position paper to MiDA and the ministry of power.

However, MiDA, in its press statement said the concession move will strengthen the balance sheet of ECG and make it productive.

“The ECG financial and operational turnarounds project also recognises the need for significant investment in the power distribution infrastructure and the operational systems of the ECG. It is in response to that need that over US$350 MILLION OUT OF THE US$ 498.2 million for the compact program has been allocated to the ECG”.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 How to create a verified PayPal account Learn how to create a verified...bullet
3 Police arrest 6 Menzgold customers trying to lock up Zylofon officebullet
4 How to write a memo How to write a memo like a probullet
5 RADP Ringier Ghana educates CCIFG members on Digital Marketing...bullet
6 Menzgold suspends online trading; ask staff to go on leavebullet
7 1D1F: Nana Addo commissions diaper making factory in Bortianorbullet
8 How to create an NGO in Ghana How to register and start an NGObullet
9 Don’t pay victims of financial scams; it sends bad...bullet
10 10 banks in danger of not meeting BoG’s GH¢400m...bullet

Top Videos

1 Former Capital Bank staff grills pork for survivalbullet
2 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet

Business

X
Advertisement