Government has finally announced a reduction in electricity tariff after negotiations with Organized Labour.
The ‘killer’ tariffs have been reduced from 59 percent to 45 percent for only consumers using 50kwh or less, who are termed as lifeline consumers, while consumers who use 51kwh to 300kwh will be paying 50 percent.
However, tariffs for all other consumption bands remain unchanged.
The reduction takes effect from Monday, February 1, 2016, according to a Memorandum of Understanding (MoU) between government and Organised Labour.
The MoU has directed ECG to within the next two weeks rectify all billing anomalies associated with the tariff adjustment that took effect from 14th December, 2015.
Meanwhile, water tariff and taxes on petroleum products remain unchanged.
The Public Utilities and Regulatory Commission (PURC) in December 2015 increased electricity and water tariffs by 59.2 percent and 67.2 percent respectively.
Many Ghanaians and businesses described the increases as harsh and insensitive.
The increases forced Organized Labour to embark on a nationwide demonstration to put pressure on government to reverse the tariff hikes.
Organised Labour was pushing for 50 percent water and electricity tariffs but government decided to reduce the tariffs for consumers within the lowest band after weeks of maintaining its stance.
By Cephas Larbi