Why Electricity Subsidy Is Not Sustainable

the Chairman of the Parliamentary Select Committee on Energy and Mines, Alhaji Amadu Sorogho, has admitted that the GHC300 million subsidy on electricity over a period of six months cannot be sustained.

The Chairman argued that subsidization of electricity in the country cannot be a permanent solution to the energy crisis.

He, therefore, warned consumers to be prepared to pay more in the near future. Alhaji Amadu Sorogho was having his take on the Electricity Company of Ghana’s (ECG)’s revision of electricity tariffs to reflect government subsidies aimed at cushioning consumers.

A statement from ECG said, “the utility relief by Government of Ghana is being implemented and therefore the ‘reckoner’ will guide Customers on money paid and the corresponding units to customers.”

Apart from the subsidy, government also paid GHc200million to the ECG as part of its debts to the company.

But speaking on Onua FM’s Yen Sempa hosted by Bright Kwasi Asempa, Alhaji Sorogho explained that even if the government pays all its debts, ECG will still need more money to operate.

The MP for Madina Constituency said “we shall pay more as time goes on but the government will not wait until the bills piles up for us to pay more lately.”


Source: GhanaWeb

Leave a Reply

Your email address will not be published. Required fields are marked *