ECG 25% Tariff Reduction Begins Today

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By Alfred K. Dogbey

Ghana’s sole power distributor, Electricity Company of Ghana (ECG) will from today, November 18, commence implementation of government’s recently announced 25 percent tariff reduction for electricity consumers.

A document from the Public Relation Department of the company received by The Herald confirming the tariff reduction today said “the company has reprogrammed its systems and is now ready to apply the subsidy, which will reduce the 78.9 per cent tariff increment effective October 1, 2013, by 25 per cent , commencing Monday November 18, 2013”.

However, the implementation processes management emphasized is “for prepayment metering customers and subsequently for the post-paid customers”.
According to the document, the gazetted tariff which took effect October 1, “has not changed, but its impact has been reduced by the Government of Ghana (GoG) subsidy” offer recently announced.

ECG said, the tariff would be fully administered, but the associated subsidies would be refunded to the customers by way of credits to consumers.

In the case of prepaid (cash based) customers, consumers “who deposit money at the time of vending, the subsidy applicable to the previous month’s consumption will be given to the customer in full at the first deposit of cash in the following month”.

Beyond the first deposit, ECG said, “other subsequent deposits within the same month will accumulate the associated subsidy and further credit customers in full at the beginning of the following month”.

It said that “if a customer’s monthly consumption is 70 units which corresponds to a deposit of GH¢25, the customer will receive a subsidy of GH¢5.32 on his/her account at the first deposit of cash the following month” adding “the receipt issued at the time of vending shall indicate the amount deposited, the applicable subsidy and the total amount / credits offered to the customer”.

It said, application of the subsidy to (unit based) prepaid customers, “the time of unit purchase for customers on PNS, the subsidy applicable to the month of October, 2013 shall be refunded as units to the customer in full at the first purchase of units on or after Monday, 18 November 2013”.

However, “beyond this purchase, all other subsequent purchases of units will also include the applicable subsidy. For example, customer whose consumption is 70 units would have paid GH¢25 but due to the subsidy of GH¢5.32, the customer will now pay GH¢19.68. Therefore the customer receives the subsidy in the form of units”.

“In the case of customers on credit metering, the monthly bill will apply the tariff in full and further adjust it downward with the applicable subsidy. The bill will show what the customer is required to pay given the approved tariff and also the applicable subsidies as well as the net bill for the customer. This process will be the same or repeated each month”.

The management of ECG further disclosed that all existing subsidies, as well as, the recently announced subsidy are all being applied to customers, adding “refunds to be received shall cover consumption for the month of October 2013.

The company announced its revised reckoner would soon be published to assist customers to understand the application of the subsidy during vending.

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