The Team Lead of the People’s Forum Ghana, Dennis Miracles Aboagye, has called on government to urgently review electricity tariffs downward, arguing that recent increases are unjustified and are worsening the cost-of-living burden on Ghanaians.
Speaking on the Asaase Breakfast Show on Monday (9 March), Aboagye said feedback from a recent forum organised by the civic advocacy group revealed widespread frustration among consumers over both the rising cost of electricity and concerns about the accuracy of prepaid meter readings.
According to him, participants at the engagement described the situation as a combination of steep tariff hikes and growing mistrust in the billing system of the Electricity Company of Ghana (ECG).
“We realised from the engagement that it is a combination of two issues. First, there is the fundamental problem with the rate at which electricity tariffs have been increased. Secondly, beyond the increase, there also appear to be calibration challenges with meter readings,” Aboagye said.
Tariff hikes questioned
Aboagye criticised the government over what he described as a 28% increase in electricity tariffs within four months, arguing that the rise undermines efforts to reduce the cost of living.
He questioned calls by the Finance Ministry for traders to lower prices, noting that rising utility costs make it difficult for businesses to pass any savings to consumers.
“If you increase utilities by 28% and traders receive some relief on the forex side, the benefit is cancelled out because electricity costs remain very high,” he said.
IMF justification disputed
Aboagye also challenged claims by the government that tariff increases are tied to conditions under Ghana’s programme with the International Monetary Fund.
According to him, the IMF agreement only requires quarterly tariff adjustments based on three indicators: inflation, the cedi-to-dollar exchange rate and fuel costs.
“What the agreement says is that tariffs should be reviewed quarterly based on the movement of these indicators. It does not say electricity must be increased every quarter,” he argued.
He further contended that recent improvements in macroeconomic indicators should have resulted in a reduction rather than an increase in electricity tariffs.
Complaints about meter readings
Beyond tariffs, Aboagye said many consumers have also complained about the speed at which prepaid electricity units are depleted.
He cited examples shared during the forum where households that previously spent about GH¢100 on electricity for a week now see the same amount lasting only two days.
“The same appliances, the same rooms, the same usage patterns, but the electricity is finishing much faster,” he said.
Call for greater transparency
Aboagye said there is a major communication gap between regulators and the public regarding how electricity tariffs are determined.
He noted that although the Public Utilities Regulatory Commission (PURC) releases statements explaining tariff adjustments, these explanations are not effectively communicated to ordinary consumers.
“There is a big gap in public education. Most people simply know that electricity has been increased, but they do not understand the factors that go into the adjustment,” he said.
Impact on businesses and households
The People’s Forum said high electricity costs are increasingly affecting small businesses and households.
Aboagye noted that some cold store operators who previously paid about GH¢500 monthly for electricity now pay between GH¢1,500 and GH¢1,600.
He warned that the situation is already contributing to persistent high prices of goods and services despite improvements in inflation and fuel prices.
“Electricity is a major factor of production. When the cost of power is high, it feeds directly into the cost of living,” he said.
Aboagye urged government to halt any planned tariff increases at the end of the first quarter and instead conduct a downward review.
He stressed that consumers are not asking for subsidies but rather for tariffs that accurately reflect the real cost of producing electricity.
“The people are not asking for subsidies. They are asking to pay exactly what it costs to produce the power they consume,” he said.
Source: asaaseradio.com
