The Executive Secretary of the Public Utilities Regulatory Commission, Dr. Ishmael Ackah, says the cross subsidy that residential consumers enjoyed at the expense of businesses has been reduced to ensure that businesses stay and thrive in the country.
According to him, the cross subsidy to residences was reduced by a little over 30% in an attempt to bridge the gap between residential and non-residential tariffs.
He noted that over the years, businesses have been fleeing Ghana for countries where non-residential consumers pay less than residential consumers due to the fact that for the past 25 years, businesses in Ghana have been made to subsidise utility tariffs for residential consumers.
In response, the PURC by bridging the gap between residential and non-residential consumers is seeking to retain and attract businesses into the country to aid Ghana’s economic recovery.
Dr. Ackah, while giving more details on JoyNews’ PM Express, on Monday said “What we did was not to pass on so much cost to the residential, what we did was to reduce the cross subsidy. So consistently over a time, industry has been subsidizing the residential sector.
“Now we hear in even the news that businesses are leaving, some are relocating to Cote D’Ivoire because there businesses pay far lower than the residential sector. You go to Uganda it’s the same thing, you go to Namibia, almost everywhere businesses pay less. Why? Because it costs less to serve businesses than to serve residential customers. That’s the first one.”
He added, “The second one is that they’re using the power for productive purposes and when they expand they recruit the people from within the residential, pay them well, so they create jobs. They can expand and contribute to economic development and all those ones so almost everywhere businesses pay less.
“In Ghana it has been the reverse since PURC was established 25 years ago. It may have a reason why it started. But it comes to a point where we need to, if nothing at all, let residential match non-residential. And the reason is that yes, so that businesses can stay and employ people. Businesses can stay and expand.”
- Ashanti NSS boss insults nurse for suggesting a change in prescription
- Nurse who was verbally abused by Ashanti Region NSS Boss no longer at Manhyia Hospital – GRNMA
- Petrol, diesel prices to go down by 10% – IES
- That is not my style – Ashanti Regional NSS boss apologises for insulting nurses
- Fire destroys shops at Kantamanto market
- ‘Mr and Mrs Adeleke’: Fans gush over photos of Chioma with Davido and her in-laws during 1st public appearance
- Fentuo Tahiru Fentuo: The day Kudus shone, in Jordan’s shadow
- NSS summons Ashanti Region boss for investigation
- Ex-Black Stars midfielder Sulley Muntari retires, age 38
- Cedi to witness mixed performance this week
- Bola Ray marks 25 years in media career, launches ‘project impact’ to mentor young people
- Kofi Jamar, Tulenkey set to perform at The Woods Bar & Grill today
- Leading NDC member describes Ofosu Ampofo as unfit to lead the party as Chairman
- Aviation safety awareness: Safety inspectors assure air passengers of safe flights
- Take Ghana’s economic challenges to God – Clergyman urges duty bearers
- Namibia select committee on budget in Ghana to engage parliament
- Kenya ministers to forgo a month’s pay in drought aid
- Namibia edges closer to having first female president
- Africa off course when it comes to HIV goals – UN
- Malawi begins first large-scale malaria vaccination
- ‘Don’t abuse your child out of frustration of current economic woes’
- Far-right killer stabbed in South African prison
- Nigeria police chief sentenced to three months in jail
- Martin A.B.K. Amidu: Games in Parliament – Speaker and Minority’s motion of censure
- Five remanded over unlawful possession of police uniforms, weapons