A Review of the Nigerian Energy Industry

Ghana outlines how to refund subsidy on power

power-transmitting-station19 November 2013, Accra – After asking for a week to configure their system to reflect on the 25% subsidy on electricity that government announced last week, the Electricity Company of Ghana (ECG) says the subsidy would take effect from 18 November, 2013.

Since the new tariff increment of 78.9% which took effect on 1st October, 2013, countless pressure was mounted on the government by the general public to reduce it. The government last week announced her decision to subsidize 25 percent of the 78.9% adjustment earlier announced.

Addressing a news conference in Accra yesterday, the Head of Regulative and Government Business of the ECG, Mr. Daniel Azu said they (ECG) would refund to the general public in unit terms the subsidy from the day the tariff increment took effect, 1 October, 2013.

Explaining how that was going to be done, he said they have three different customers, which included prepaid (cash based), prepaid (unit based) and post-paid (credit meters) customers who would all receive their subsidies in different forms.

Continuing, Mr. Azu explained that prepaid (cash based) will receive their subsidy of October when they do their first deposit of cash from 18 November, 2013, adding that, beyond the first deposit, other subsequent deposits would be refunded at the beginning of the ensuing month.

“For example, if a customer’s monthly consumption is 70 units, which corresponds to a deposit of GHc25, the customer will receive a subsidy of GH¢5.32 on his/her account at the first deposit of cash the following month. The receipt shall indicate the amount deposited the applicable subsidy and the total credits offered to the customer”.

Whilst the prepaid (unit based) users shall get their subsidy of October 2013, refunded as units at the first purchase of units on 18 November, 2013 or after which other purchase of units would include the applicable subsidy. “Customers buying GH¢25 will now pay GH¢19.68 “, he said.

And the last one being the credit meters, customers’ subsidy would be applied in their billing, the bill he noted would show what the customer is required to pay less the applicable subsidies.

“We wish to emphasize that the implementation of the subsidy shall commence on Monday 18 November, 2013 for prepayment metering customers and subsequently for the post-paid customers”, Mr. Azu assured.

To that end, he said their revised reckoner would be published to assist customers in understanding the application of the subsidy during vending as he announced that, all statutory levies like Value Added Tax, street light levy and others was to be paid by the customer.

Speaking in an interview on government’s commitment in paying the subsidy, the Public Relations Officer (PRO) of ECG, Mr. William Boateng said they have no idea how government intend paying the subsidy for now until after three months when they send the bill to government.

“But we are hoping that government will not delay payment, the government knows that the backbone of every economy is energy and we hope government will not delay payment of subsidy to ensure efficient energy supply”, he said.


– The Chronicle

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