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Tariff reduction can lead us back to ‘Dumsor’ – Edward Bawa
The NDC MP fears if the reduction isn’t managed well it could take the nation back to the power crises that happened a few years back.
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Bawa fears if the reduction isn’t managed well it could take the nation back to the power crises that happened a few years back.
READ MORE: GRIDCo explains cause of Monday’s ‘dumsor’
“If you look at the challenges that brought us into dumsor, apart from the capacity and fuel security, it also had to do with the financial health of the utilities,” he said on Accra based Citi FM.
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“The current move, the reduction is on the energy charges, it is an encroachment on their revenues because energy charges are one of the accruals that the utilities will make”, he added.
The government announced a reduction in power tariffs for both commercial and non-commercial users a few days ago. Commercial users will enjoy a 17% reduction while non-commercial users will enjoy a 30% reduction.
However, the Bongo MP thinks such reductions can cripple the energy sector.
He said, “I know the factors that took us to dumsor. Those factors are still lingering. My fear is that, if we don’t consolidate a make this system robust, and just because of the fact we want to satisfy electoral promises, we go into situations like this we may expose ourselves to yet another dumsor.”
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He rather advocated for the government to reduce taxes instead.
“Industry will expand, they will make profits; you tax those profits. They expand, they employ people and you still tax incomes. This is how you will get it [revenue]. It is an indirect road but you will eventually get the money. That is the proposal I am making”, he argued.
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