The Ministry of Energy and Green Transition is implementing measures aimed at reducing the cost of electricity generation and mitigating the impact of tariff adjustments on consumers, Deputy Minister for Energy and Green Transition, Hon. Richard Gyan-Mensah, has disclosed.
Speaking on the floor of Parliament while answering questions on measures being taken to address electricity tariff adjustments, the Deputy Minister said the government was pursuing strategies to ensure that power is generated at lower costs without compromising the sustainability of the sector.
According to him, one of the key interventions involves procuring additional electricity generation capacity at the least possible cost. He added that the Ministry is also renegotiating existing Power Purchase Agreements (PPAs) to secure lower generation tariffs and reduce the financial burden on the power sector.
Hon. Gyan-Mensah, who is also the Member of Parliament for Gomoa West, explained that quarterly electricity tariff reviews are influenced by four major factors: the exchange rate, inflation, the Weighted Average Cost of Gas (WACOG), and the hydro-thermal generation mix.
He noted that fluctuations in any of these variables can affect the cost of power production and, consequently, electricity tariffs charged to consumers.
The Deputy Minister further highlighted the importance of the Lifeline Tariff policy, describing it as a social intervention specifically designed to support poor and low-income households by providing electricity at subsidised rates.
He assured Parliament that the Ministry would continue to collaborate closely with the Public Utilities Regulatory Commission (PURC) to strike a balance between maintaining affordable electricity tariffs and ensuring the long-term viability of the power sector.
“Our objective is to keep electricity affordable, especially for vulnerable consumers, while safeguarding the sustainability of the energy sector,” he told the House.
The government’s efforts come amid periodic tariff reviews by the PURC, which are intended to reflect changes in key economic and operational indicators affecting electricity generation and distribution.