National

House okays new levy on electricity, gas

Carbonatix Pre-Player Loader

Audio By Carbonatix

Parliament Thursday amended the Public Utilities Regulatory Commission (PURC) Act 1997 (Act 538) to impose a levy on electricity transmitted by the Ghana Grid Company and on natural gas transmitted by a transmission utility as well as such utilities that may be licensed from time to time. The levy will serve as additional source of funding for PURC and the Energy Commission to effectively regulate and ensure efficient service delivery. The Bill, which received massive support from the Members of Parliament, will also ensure that only those who benefit directly from the service of the regulated utility companies pay for the associated cost. The Minister of State at the Presidency, Kwajo Tawiah Likpalimor (NDC-Kpandai) moved the motion for the amendment of the Bill. Presenting the report of the joint committee of Mines, Energy, Works and Housing-on the bill, David Tetteh Assumeng, cochairman of the joint-committee, said the committee observed that the impact of the levy on consumers would be very minimal. He said the committee was informed that consumers who consume between 0 and 50 kwh per month (lifeline consumers) would pay only 0.5Gp (five Ghana pesewas) while an average household that consume 200kwh per month or GH¢30.00 per month would pay 0.25Gp. He said the committee recommended that the PURC and the Energy Commission should put in place measures to ensure greater improvement in the quality of service the utility companies render to the public. Mr. Assumeng said the committee was informed that PURC and the Energy Commission had challenges in monitoring the performance of the utility companies as a result of inadequate funding. He said officials of PURC and the Energy Commission indicate that the two institutions did not have requisite equipment to monitor standards set for the utilities by the regulators. "The result is that the Energy Commission is unable to enforce standards set out in 12 legislative instruments." He added that the high staff attrition rate in the two institutions as a result of poor remuneration hindered the effectiveness of the institutions. Mr. Assumeng said persistent calls from the public for an improved service delivery quality by the utility companies required a very strong independent regulator with the needed financial technical and human resources to effectively and efficiently monitor the activities of the utility companies.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:  
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.