Barring any interventions from the government, electricity bills are expected to double anytime soon. Reliable information chanced upon by BUSINESS GUIDE indicates that the Public Utilities Regulatory Commission (PURC) is on the verge of approving a 100 percent increase in electricity tariffs. Even though the Volta River Authority (VRA), Ghana Grid Company Limited (GRIDco) and Electricity Company of Ghana (ECG) are expecting to see something above 100 percent increment, indications are that the Commission would approve the 100 percent increment anytime now. Chief Executive of the Volta River Authority (VRA), Kweku Awotwe says his outfit, GRIDco and ECG are asking for a 125 percent increment to undertake expansion projects and also provide reliable power supply, “but at least with the 100 percent increment, we can manage somehow”. The country, he noted, will continue to experience intermittent power outages until electricity consumers pay realistic tariffs. Electricity users are currently paying GH¢0.0602 per kilowatt. With the new increment therefore, the tariff becomes GH¢0.1204 per kilowatt, a document available to this paper states. “The present tariff regime was set based on the assumption that there would be natural gas from the West Africa Gas Pipeline Project to run the thermal plants but this project is yet to be completed. For now, let us increase the tariffs. If the gas comes, we would drop the price,” Mr Awotwe stated. GRIDCo needs over $1 billion to undertake expansion projects and also address other problems. Out of the afore-mentioned figure, GRIDco was able to mobilized $300 million. “We need an additional $700 million to meet our financial needs,” the Chief Executive of GRIDco, Charles Darku said, noting that it is appropriate that the tariffs be reviewed so that the utilities could catch up with inflation and other economic indicators. The ECG on the other hand says it would need $180 million annually as an investment requirement to contain the growth in the electricity sector. The tariff adjustment confirms earlier reports that Ghanaians will no longer enjoy electricity, water and fuel subsidies – a conditionality synonymous with the International Monetary Fund (IMF). The Fund last year granted a $1.1 billion credit facility to cushion Ghana’s economy from the global credit crunch, high fuel prices and the 2008 election costs. Dominique Strauss-Khan, head of the IMF, in an interaction with senior editors recently stated: “Electricity tariffs are not adequate to generate resources to boost infrastructure. Government cannot continue to provide subsidies for fuel. We have agreed that public sector wages must not go beyond a certain level. “If we allow governments to do whatever they want to do it would be difficult for them to redeem their debts,” he further noted, stating, “Our job is to provide economic stability and financial growth.” Source: Felix Dela Klutse/ Business Guide