Mining companies in the country are deliberating on the new electricity tariff of 100 percent proposed by government. On June 16, 2008, government, at a meeting with the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG) announced some adjustments in electricity Special Load tariffs for high voltage consumers. The decision was to compel mining and steel companies operating in the country to pay a Bulk Generation Tariff of 16.91 percent, translating into an End-User Tariff of 22.31 Ghana Pesewas per kWh, higher than what they used to pay-11 Ghana Pesewas- from July 1, this year. But speaking in an interview with CITY & BUSINESS GUIDE, Joyce Aryee, Chief Executive Officer of the Ghana Chamber of Mines said though the mining firms support full cost recovery for electricity usage, they are still negotiating for the mix of payment such as the usage of hydro. “As an industry we agree to pay for a full cost recovery but we don’t want a sudden jump that will cripple our operations”. She explained that the mining firms have reached an advanced stage with the negotiation and will soon make it public. “We will come out at the appropriate time with the details as we deem necessary,” she added. The mining firms have for sometime now been negotiating with the government to seek a reduction in a 100 percent power rates increase resulting from an official move to cut electricity subsidies. But government is unwilling to reduce the rate because of the record oil prices since any decision could eat into the country’s budget and growth rate. Kwadwo Baah-Wiredu, Finance and Economic Planning Minister recently told the international press that though the mining companies were seeking a reduction in power rates, the government was sticking to its plan. “We haven't changed the implementation date; neither have we revised the proposed rate,” he said. “We will continue to dialogue with them and let them come to terms with the fact that we can no longer subsidise their operations,” the Finance Minister added. Source: