Energy Economist with the Electricity Company of Ghana (ECG), Ebenezer Baiden, says the latest tariff adjustment fails to consider the very macroeconomic indicators that normally guide quarterly reviews.
Speaking on Joy News’ PM Express on December 9, he stressed that the current upward review is driven by a different structure that focuses on long-term investments and debts, not the usual inflation and exchange rate pressures.
Mr Baiden explained that this round of adjustment marks a shift from the regular quarterly process.
“So what it is is that this adjustment doesn’t look at macroeconomic indicators,” he said.
He noted that the quarterly mechanism “will look at exchange rates, inflation, and then the fuel mix and all.”
But the increase announced now, he maintained, is part of a structural plan that runs for three to five years.
He described the new framework as one that captures past investments and outstanding financial obligations.
“This is a structural adjustment, three to five year adjustment, and it’s looking at the investments you’ve made, over time, all the debts you have incurred to clean your books, and then now reset you again for the next mile. So this is what effectively the case has been.”
According to him, ECG has commissioned new projects that are already operational. He said these projects come with significant cost commitments that must be honoured.
He highlighted the company’s digitisation programme as one of the major investments now reflected in operations.
“The digitisation drive, for example, of ECG, has transformed our operations significantly. Now, today, customers can buy credits without even going out of their homes. You can recharge at home, and all these are the effects of some of the investments that have happened.”
Mr Baiden noted that ECG remains committed to delivering efficient service but admitted the company must sometimes rely on customers to help sustain operations.
“Services. Will continue to deliver services, quality services, to customers, but it gets to a point where you will need that push from customers.”
He stressed that the approved increase still falls short of what the company requires.
“So, as we sit here, the 9.8% we say it’s not adequate. But what can we do? We should now use it to still deliver the same services to customers.”
The Electricity Company of Ghana (ECG) says it will continue to do everything possible to keep the lights on, even though the latest tariff adjustment falls short of what the company believes is needed to sustain its operations.
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