Majority Leader Mahama Ayariga has defended the Public Utilities Regulatory Commission’s (PURC) 2.45% hike in electricity tariffs, calling it a necessary move in the government’s broader plan to tackle the rising debt of the Electricity Company of Ghana (ECG).
Addressing Parliament on Friday, June 27, Ayariga noted that despite the stability of key economic indicators like inflation, fuel prices, and the exchange rate, the tariff increase is crucial to help ECG generate enough revenue to stay operational and prevent power shortages.
“The PURC held off on tariff adjustments last year, which contributed to ECG’s growing debt. ECG’s debt continues to rise, and the government must settle it. Failure to revise tariffs to enable ECG to meet its financial obligations could lead to the company’s collapse. Without the funds to purchase inputs, generators will shut down and power outages will follow,” he warned.
Ayariga made the remarks in response to minority MPs who had questioned the need for the increment given the current economic stability.
