Parliament’s Mines and Energy Committee has concluded that taxes on energy implemented by government and service charges imposed by the Electricity Company of Ghana (ECG) are to blame for the astronomical tariff hikes on electricity.

The Committee has been probing reports of astronomical bills being paid by consumers, especially after the introduction of the ECG's new software billing system.

The service provider has been sternly criticised by the public over the astronomical increases recorded on their bills. Despite a 50 percent increase imposed by the Public Utilities Regulatory Commision last December, consumers say they are paying more than 100% increase in tarrifs.

Officials of the ECG attributed the hikes to poor internet, removal of subsidy by government as well as the introduction of taxes.

As the Committee prepares to present its report to the House next week, its Vice Chairman Adam Mutawakilu in an exclusive interview with parliamentary correspondent, Elton John Brobbey said ECG on its own has imposed what he calls capacity and service charges on electricity which is partly responsible for the increases.

He said the new rates “virtually contain the 59.2 percent approved by the PURC in December,  then we have the energy levy of 5 percent and the street light levy of 5 percent and service charge…that is where we needed clarification.”

The Vice Chairman however indicated that the ECG has informed the Committee it is taking steps to address the issue.

He said “They have recorded 7500 complaints of over billing and it is genuine and it is as a result of the new software for the billing system and they are taking the time to address individual cases.”

Measures are also being put in place to address issues concerning the memory of the new meters which cause them to run faster than normal.

He said the ECG has assured that it will compensate consumers who have had to pay more than they should.

“Action will be taken and if you’re over billed, be certain that you will be compensated with some credit”, he stressed.

Meanwhile, the Public Utilities Regulatory Commission has directed the Electricity Company of Ghana to suspend the implementation of its new billing system 'until further notice.'