The Ministry of Energy and Green Transition is implementing measures to reduce the cost of electricity generation, including renegotiating existing Power Purchase Agreements (PPAs) and ensuring that additional power is procured at the lowest possible cost.
Deputy Minister for Energy and Green Transition, Richard Gyan-Mensah, disclosed this when he appeared before Parliament to respond to questions on measures being pursued to address electricity tariff adjustments.
He explained that the government is exploring ways to bring down the cost of power generation as part of broader efforts to ensure affordable and sustainable electricity supply.
According to him, the Ministry is prioritising cost-effective procurement of additional electricity while engaging relevant stakeholders to review existing PPAs with the aim of reducing generation tariffs.
Mr Gyan-Mensah, who is also the Member of Parliament for Gomoa West, further outlined four key factors that influence quarterly electricity tariff reviews.
These are fluctuations in the exchange rate, inflation, the Weighted Average Cost of Gas (WACOG) and changes in the hydro-thermal generation mix.
He explained that movements in these economic and operational indicators contribute to adjustments in electricity tariffs, making them important considerations in the periodic tariff review process.
The Deputy Minister also highlighted the importance of the Lifeline Tariff, describing it as a social intervention designed to cushion poor and low-income households against the cost of electricity.
He assured Parliament that the Ministry would continue collaborating with the Public Utilities Regulatory Commission (PURC) to explore measures that would keep electricity affordable, particularly for vulnerable consumers.
He added that the government’s approach would seek to balance consumer protection with the long-term financial and operational sustainability of Ghana’s power sector.
By 1960news.com
