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Cabinet approves new tariff pricing strategy

Cabinet has approved a comprehensive approach to utilities tariff and pricing structure to address current demands in the energy sector.

Finance minister, Seth Terkper who announced this said Cabinet approved the new approach in a bid to ensure that reliable supply of power in the country.

He said a reasonable tariff policy will enable the country achieve this.

Ghana is hoping to end the current energy crisis with implementation of several interventions including the deployment of power badges to address the shortfall in generation. According to Mr. Terkper though government has used part of the millennium challenge account compact two money to pay off debt it owe the electricity company of Ghana, only an acceptable tariff will end the crisis.

According to Mr. Terkper though government has used part of the Millennium Challenge Account (MCA) Compact II funds to pay off debt it owe the electricity company of Ghana, only an acceptable tariff will end the crisis.

Details of the new pricing approach is yet to be released, however, analysts say it would be heavy with full-cost recovery elements.

 

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