Industry Cries Over Its Subsidy For Residential Users Of Electricity


The Association of Ghana Industries (AGI) has repeated calls for the cancellation of the tariff structure that mandates industries in the country to subsidise electricity cost of residential users.

Residential users of electricity currently pay 60 per cent of the cost, while industry and government pay the remaining 40 per cent. But the members of the AGI have for months been pushing for the cancellation of that policy regime which they say, has become a disadvantage to industry.

They argue it increases their utility cost, thus contributing to a high cost of production. Addressing the 56th Annual General Meeting of the AGI, its President, James Asare-Adjei, said industry is no longer in the position to subsidize the electricity cost of residential consumers.

“We need a drastic action on this in order not to disadvantage industry players,” he stated. Unreliable power supply has been one of the major challenges facing the operation of businesses in Ghana in recent times.

Although Mr. Asare-Adjei acknowledged significant improvement in electricity supply to Ghanaian businesses, he observed it has resulted in increased tariff.

“The improvement in the energy supply has brought in its wake the high and unbearable electricity tariff to industries in particular and businesses in general,” he said.

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