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Majority Leader justifies 2.45% electricity tariff hike

Published

6 hours ago

June 28, 2025

Parliament on Friday, June 27, witnessed a fierce defence of the Public Utilities Regulatory Commission’s (PURC) recently approved 2.45 per cent electricity tariff increment, with Majority Leader Mahama Ayariga asserting the necessity of the hike to avert the collapse of the Electricity Company of Ghana (ECG).

The new tariffs are set to take effect from July 1, 2025.

Speaking on the floor of Parliament, Mr. Ayariga directly addressed public concerns and opposition to the tariff adjustment, explaining that it was a critical measure to offset mounting debts within the power sector.

“You all know that the whole of last year and before that, there was an effort to prevent the PURC from adjusting the tariffs. So that whole period, there was no adjustment, and you know very well that bills were accruing; payments have to be made,” Mr. Ayariga stated.

He highlighted the precarious financial position of ECG, a state-owned power distributor, which has been accumulating significant liabilities due to unadjusted tariffs.

“ECG is accumulating huge [debt] and it has to be paid, so who is supposed to pay? Is it not the consumer?” he questioned, emphasising the unavoidable reality that the cost of providing electricity must ultimately be borne by its users.

He warned of severe consequences if the tariffs are not adjusted: “And if you are not adjusting the tariffs to enable ECG to pay, ECG is going to collapse. They are no longer able to buy the input needed to keep the generators on, and we are going to have a power outage; the bills have to be paid.”

The Majority Leader dismissed arguments that an improved macroeconomic environment should automatically negate the need for tariff adjustments.

“The bill has to be paid. So if PURC is doing its work, I do not think there is a basis for saying that because we have improved the economy, it doesn’t mean that the debt at ECG will just be whisked away. The bill has to be paid partly by consumers,” he asserted.

The PURC’s decision to implement the 2.45% increment, part of its routine quarterly review mechanism, has indeed drawn mixed reactions across the country.

While the commission cited factors like projected inflation at 20.67%, an exchange rate of GH₵10.3052 to the US dollar, and an increase in the weighted average cost of natural gas, some consumer groups and the Minority Caucus have questioned its justification given recent macroeconomic stability.

ECG has historically faced significant financial challenges, including high technical and commercial losses and substantial debts owed to power generators.

Reports have indicated billions of Ghana Cedis in accumulated debt and revenue under-declarations in previous years, placing a heavy burden on government finances and impacting the stability of the power supply.

The Public Utilities Regulatory Commission (PURC) has also noted GH₵488 million in outstanding revenues from previous quarters that this adjustment aims to begin clearing.

The Minister for Energy and Green Transition is expected to appear before Parliament next week to provide further clarity on the tariff review process and its broader implications for Ghana’s energy sector.

For now, the Majority Leader’s stance underscores the government’s position that the tariff hike, though unpopular, is a necessary step towards ensuring the financial viability of ECG and maintaining a stable power supply for consumers nationwide.

myjoyonline.com

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Indian Prime Minister to visit Ghana On July 2

Published

44 minutes ago

June 28, 2025

AladdynKing

From Wednesday, July 2, to Thursday, July 3, 2025, His Excellency Narendra Modi, the Prime Minister of the Republic of India, will travel to Ghana for a two-day official visit.

The visit demonstrates the cordial and long-standing amicable relations between Ghana and India, the Presidency said in a statement issued by Felix Kwakye Ofosu, Minister of State in Charge of Government Communications.

According to the release, President John Dramani Mahama and Prime Minister Narendra Modi will meet bilaterally at the Presidency as part of the visit with the goal of enhancing collaboration in important strategic areas of shared interest.

“The two leaders will engage in discussions aimed at deepening cooperation across various sectors, including trade, investment, agriculture, technology, education, healthcare, and energy. They will also exchange views on regional and global issues of mutual interest.”

President Mahama and Prime Minister Modi will speak at a joint press conference after the two nations sign a number of bilateral agreements to strengthen the frameworks for collaboration between Ghana and India.

In addition, the Indian Prime Minister and his delegation will be honored with a State Dinner hosted by the presidency.

“The visit by Prime Minister Modi is expected to strengthen bilateral ties, foster deeper economic cooperation, and solidify the bonds of friendship between the peoples of Ghana and India,” the statement concluded.

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PHOTOS: Two More Buildings Collapse In Cape Coast After Heavy Rains

Published

1 hour ago

June 28, 2025

AladdynKing

Two additional buildings have collapsed in Cape Coast, bringing the total number of destroyed structures in the area to six in just one week.

The most recent event happened on Thursday, June 26 after a heavy downpour. Around 10 p.m., a residential structure in Brofoyedur, central Cape Coast, collapsed.

Thankfully, no fatalities were reported because the residents had already fled the house because it had previously flooded.
The residents have been unwilling to move, even though it is obvious that the compromised structure poses a threat. On Friday, June 27, Esi Mary, one of the locals, said that the government must step in immediately.

“The downpour that happened yesterday has drained all the sand into the gutter, and that has caused a blockage leading to a flood, and that flood has ended up destroying our houses. No one was hurt. All our machines in the building have been damaged by the rain,” she lamented.

A storey building that was still under construction collapsed at the West End, next to Adisadel College, in a different occurrence. Although there were no recorded injuries in that structure, the municipality’s building safety worries have increased due to the frequent failures.
In response, Eduamoah Okyere Ekow Panyin, the Central Regional Minister, ordered the Cape Coast Municipal Assembly to remove all damaged buildings right now in order to stop other tragedies.

“We have ordered that the remaining building be brought down as early as possible so we can have an arrangement with the family to see how best we can assist. In the meantime, we have asked them to move to a different area and stay there for a while. We arrange how to assist them,” the minister said.

News

A/R: Mentally Unstable Man Allegedly Butchers Stranger At Aputuogya

Published

2 hours ago

June 28, 2025

AladdynKing

Residents of Aputuogya in the Bosomtwe District of the Ashanti Region are shocked and terrified after an unidentified person was allegedly killed by a guy suspected of having mental instability.

The suspect, who is also unknown to the residents of the Aputuogya area but is rumored to reside in the nearby town of Feyiase, is believed to have attacked the deceased, whose name has not yet been determined.

Samuel Adu Amankwah, the assembly member for the Aputuogya Electoral Area, confirmed the incident, stating that the suspect tried to dispose of the body by burying it in a gutter after the grisly deed.