Killer Electricity Tariffs: Subsidy or Re-alignment?

A cross-section of Ghanaians interviewed by the Daily Statesman yesterday expressed serious indignation at what they described as the consistent attempt by President John Dramani Mahama and his government to engage in propaganda, lies and deception about serious issues that affect their very survival.

They made specific reference to the ongoing confusion in the energy sector, created by the announcement of a government subsidy on electricity tariffs by the Electricity Company of Ghana, and the subsequent counter announcement by President Mahama that his government was not paying any subsidy.

Dennis Asafo-Agyei, a washing bay owner at Ashaiman, is at a loss as to what the Mahama government is really up. Pouring his frustrations, Dennis said he believed the government was “confused.”

“I don’t really know what President Mahama and his people are doing. Today he says this, the next day, he says another thing. The confusion within the NDC government is getting worrying,” Dennis told the Daily Statesman.

“We all know how this government has woefully failed the people of Ghana. Now that election is approaching, they are planning all ways to deceive us again. Now, they are using electricity, a serious matter, to deceive the people of Ghana. This is very shameful,” Faustina Boahen told the paper.

While on his recent ‘Accounting to the People’ tour of the Greater Accra Region, President Mahama, at Madina, gave a firm promise to the nation that his government was going to reduce electricity tariffs by July 1, 2016.
The promise was made the same day residents and business owners from three adjoining towns in Accra – Nungua, Teshie and La – had taken to the streets in protest against the “killer Mahama Oponko” tariffs.

President Mahama described the demonstration as needless, and promised that suffering Ghanaians would heave a sigh of relief with a reduction in what they currently pay for electricity, starting from July 1.

But eight days into the month of July, there is no indication on the ground to show that President Mahama intended to honour his promise to the nation.

Monday, the ECG held a press conference and announced that the Mahama government was going to provide a sum of GHc300 million to offer subsidies on the current huge electricity tariffs for the next six months.

This was corroborated by Deputy Power Minister John Abu Jinapor, who explained that the subsidies were in categories meant to bring relief to customers.

“Now all customers will enjoy the subsidies introduced, which means the first 50 units consumed will only attract 33 pesewas per unit which includes levies and taxes,” William Boateng, PRO of ECG said.

But President Mahama, Wednesday, debunked the announcements made by the ECG and his deputy power minister, saying that his government was not subsidizing the tariffs but instead the power distributor was re-aligning its billing cycle.

“The bills have been made more transparent. So that you can tell with every unit you buy how much the value of the unit is. It is not a subsidy. It is a re-alignment of the billing system that makes it possible for us to able to know how much we are spending on electricity,” the president said.

Information available to the Daily Statesman indicates that the International Monetary Fund has been kicking against any move to reduce the current electricity tariffs. As things stand now, it is up to the Mahama government to either hear the cries of suffering Ghanaians and adjust the charges downwards or remain “tied to the apron strings” of the IMF while the people continue to suffer.