Business News of Tuesday, 5 February 2019
Energy Minister, John Peter Amewu says the Akufo-Addo government has brought sanity to the power sub-sector ensuring that the country is a promised land as far as energy is concerned.
He said government has “reviewed several power purchase agreements saving the country over $700 million every year for 13 years in excess capacity charges.
“The reviewed and renegotiated renewable energy PPAs resulted in the reduction of tariffs from the average of $19.057 to $12.78. The renewable energy total capacity also dropped from 2265.1MW to 515.6MW.”
Taking his turn at the Meet The Press series Tuesday in Accra, he said they met the sector in a very deplorable state with “alarming high indebted utilities, high electricity tariffs, poor electricity distribution service and low energy penetration.”
However, he said government has successfully revived the dying state of the energy sector.
According to the Energy Minister, Ghanaians are now enjoying affordable and reliable power due to their relentless efforts in fixing the energy sector.
Mr Amewu also said government has also achieved significant feats in gas commercialisation. “There has been a significant reduction in gas price from $10.5/MMBtu to $7.89/MMBtu and have also successfully interconnected the gas export pipeline into Ghana’s Atuabo-Takoradi to enable the Sankofa gas to be transported through the Natural Gas Transmission System (NGTs) to various customers across the country,” he explained.
He cited the launching the first ever licensing Rounds Bid last year by President Akufo-Addo, in accordance with the Petroleum Act of 2016.
The Minister also said in February 2018, the Petroleum Commission launched the Petroleum Register which includes petroleum agreements, licenses, permits and authorisations.
Mr Amewu also noted that government directed the motivation of domestic petroleum product price increases.
“Since March 2017 to August 2018, Government has implemented various tax interventions such as the Removal of excise duty on 16th March 2017;
Reduction of the Special Petroleum Tax rate from 17.5% to 15% on 16th March 2017;
Reduction of the Special Petroleum Tax rate from 15% to 13% on 16th February 2018;
Conversion of the Special Petroleum Tax from Ad valorem to Specific Tax on 16th February 2018; and
Reduction of the Price Stabilisation and Recovery Levies (PSRL) from 1st December 2017.”
The former Lands and Natural Resources Minister also spoke on the safety of Ghanaians saying that Cabinet has directed a number of actions including the immediate commencement of the National Liquified Petroleum Gas (LPG) Promotion Policy based on the Cylinder Recirculating Model (RCM).
He said this is to ensure that at least 50 per cent of Ghanaians have access to safe and environmentally friendly LPG for domestic, commercial and industrial use by 2030.