25% reduction in electricity tariffs takes effect today

“From today ECG is ready to administer the subsidy. When you purchase credit from today, you will see a one off payment to the customer in the form of unit or in the form of additional money deposits on your metre” which will represent the subsidy for the month of October, an Energy Economist with ECG, Mr. Ebenezer Baiden said.

Government reduced electricity tariff from 78.9% to 59.18% with effect from October 1, 2013 according to a communiqué signed by the Deputy Minister of Information and Media Relations, Felix Kwakye Ofosu.

“The starting point of the electricity tariff increase towards full cost recovery has been reduced by 25 percent. That means the starting point towards the full cost recovery reduces from 78.9% to 59.18% with effect from 1st October 2013,’’ the statement stated.

In an interview with Citi News an Energy Economist with the ECG, Mr. Ebenezer Baiden further explained that “for the month of November beginning December when you go to purchase, you will receive that of November. So at the beginning of every month, you will receive the subsidy that pertains to the previous month.

He added that for customers who are on the pay and smile system, (which is the unit based prepayment metering system); the subsidy for the month of October will be in the form of additional units on their metres. And any subsequent purchase would receive the subsidy component immediately.

He further explained that for postpaid customers, “once the month ends and we prepare your bill, you will see what you were supposed to pay given the tariff and then the subsidy component on the bill and then the difference is what you will pay to ECG.”