The Vice President, Dr. Mahamudu Bawumia is crediting the President Akufo-Addo government and New Patriotic Party (NPP) as the first government to have reduced electricity tariffs in the history of the Fourth Republic.
He said the 22% reduction in electricity prices in 2018 was the most significant intervention in the utility sector by the government in recent times.
Speaking at the government’s 2020 town hall meeting in the Ashanti Regional capital, Kumasi, on Tuesday, Dr. Bawumia said although the government subsequently increased electricity prices by 11.7% in 2019, the average for both years still showed a significant reduction in the cost of electricity.
“[In] 2018, we reduced electricity prices by 22% and by the way, this is the first government in the history of the fourth republic that has reduced electricity prices. And in 2019, we increased the prices by 11% but when you take the net between 2019 and 2018, in net terms, since we’ve been in office, we’ve reduced electricity tariffs by 10%.”
“And this has never happened before in the 4th republic and therefore it is a promise we have fulfilled,” he said.
The PURC in March 2018 announced a 10-30 percent reduction in prices of electricity effective March 15, 2018.
Residential customers had a 17.5% reduction, whilst non-residential customers enjoyed 30% cut.
The mines were also entitled to 10% reduction, with special load tariff customers also enjoying 25% reduction.
Electricity tariff changes since 2010
Data from the PURC indicates that excluding 2012, 2016 and 2017, where electricity prices were increased and in 2018 when the prices were reduced, all other years recorded an increase of at least 10 percent.