Tariffs Must Reflect Cost Of Operations - Power Minister

Power Minister Dr Kwabena Donkor says tariffs must reflect the cost of operations in the generation and distribution of power.

He explained that more investment is needed in the sector.

He told Parliament on Thursday, as he concluded contributions on the motion for the approval of the 2016 budget estimates for the Power Ministry that the all Government Ministries, Departments and Agencies (MDAs) being moved to prepaid meters as one of the surest ways to reduce commercial losses in the supply of the electricity.

Dr Donkor’s explanation comes in the wake of recent announcement of increases by the Public Utilities Regulatory Commission (PURC) of tariffs of water and electricity.

On Monday December 7, 2015 the PURC announced a 59.2% and 67.2% hikes in electricity and water respectively ahead of the Christmas season. The hikes are to take effect on December 14, 2015.

The announcement has however been met with mass uproar by civil society groups, political parties and a cross section of Ghanaians, calling for a suspension of increment in the tariffs.

The Government of Ghana, in the 2016 Budget statement has given estimate of GHC884,269.00 million for the services of the Ministry of Power against that of GHC842,168.00 million for the year 2015.

According to the Minister, Government was embarking on increasing the coverage of electricity across the country, and is working hard to eliminate both technical and commercial losses in the generation and supply of electricity.

In a contribution, Minority Leader Osei Kyei Mensa-Bonsu, observed that about 18 per cent of the electricity generated was wasted and called on the Ministry to adopt measures to reduce the waste.

Mr Haruna Iddrisu, MP for Tamale South and Minister for Employment and Labour Relations, noted the debilitating effects of the current power outages on economic growth, job creation, social and academic life, and urged Ghanaians to look at tariff regime in terms of the cost of production.

Mr Mustapha Ussif, MP for Yagaba Kubori, wondered why, as he said, only 26 per cent of the Power Ministry estimates were released by the Ministry of Finance last year.

Mrs Gifty Eugenia Kusi, MP for Tarkwa Nsueam, urged the Ministry of Power to adopt more effective measures to reduce the large turnover rate of experts at the Ministry.

Some other estimates that were approved were GHC495.00 million for the Ministry of Gender, Children and Social Protection and GHC 274.21 million for the Ministry of Environment, Science, Technology and Innovation.

Meanwhile, the House is expected to meet the Electoral Commission later in the day on current issues of national interest.