Despite the relative stability in power supply, cost of electricity is still a major challenge to businesses in Ghana; this is according to the Association Ghana Industries’ (AGI) second quarter business barometer report.
According to the association, the current cost of power to industry at 19 cents per kilowatt hour is major challenge to members of the AGI.
This, the report indicated is over 30 percent of production cost to industry.
Speaking to Citi Business News, the Chief Executive Officer of the AGI Seth Twum Akwaboah stated that the association wants the tariff regime restructured.
“The high cost of electricity tariffs continues to render Industry uncompetitive. Reduction in energy sector levies has not reduced tariff levels significantly. It is critical for the current tariff regime to be reassessed. We must look at the situation where industry pays more than residential consumers. It must be reversed,” he lamented.
Mr. Akwaboah argued that it is time for government to take a relook at the tariff regime to correct the system.
He observed that cheap power will be a boost to economic growth as manufacturing is a critical sub-sector of industry.
“At tariff levels of over 19 cents kw/h, it is important to re-examine the current utility pricing and tax regime. If government is to chart a competitive path for industry then we must reduce the cost of power to industry,” he stressed.
On his part, the president of the AGI, James Asare-Adjei maintained that AGI is committed to working with the Energy Ministry and PURC to find lasting solution to the energy pricing for industry in Ghana.
Touching on the Private Sector Participation of the Electricity Company of Ghana (ECG) , Mr. Asare-Adjei stated that the move will help equip the power supply company and make it efficient.
“Government’s plan to seed 51% of the concessionary arrangement for local participation is laudable and AGI believes it will go a long way in resolving the cost of power to Industry. We urge government to intensify the dialogue with Industry on the 51% composition,” he said.
Source : citibusinessnews