You may be paying more for electricity - Energy experts say after new AMERI deal

You may be paying more for electricity - Energy experts say after new AMERI deal

- The AMERI deal has proven to be controversial since its agreement in 2015

- Energy experts are of the view that the renegotiation proposal will shoot up electricity prices

The information according to is that, energy experts have agreed that Ghanaians are likely to pay more for electricity than they used to. This development is due to the renegotiation that the ruling New Patriotic Party (NPP) undertook with the infamous AMERI deal.

On Wednesday, the government proposed in Parliament to amend the deal. The AMERI deal has proven controversial ever since the erstwhile National Democratic Congress (NDC) agreed to the $510 million deal in 2015.

Indeed, the NPP made the deal a campaign issue citing financial loss to the state. It actually garnered a lot of positive response for the party but it seems the revoking the said financial loss will not be as easy as the NPP had thought.

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Paying more for electricity
Ghana's Minister of Energy and Petroleum, Mr Boakye Agyarko. Photo credit: Supplied

A new company Mytilineos International Trading Company AG, has been identified by the government as the entity to take over the energy project from AMERI. If the proposal is approved, government claims it will save the people $405 million.

Under the new arrangement, the government will pay AMERI $39 million. The new company will also pay $52 million to Ameri on behalf of the government of Ghana.

But energy experts are not too sure the proposal will make things easier on the people.

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One of these experts, Kwame Jantuah is quotd as saying: “If the idea is to get consumers pay less for electricity, then I’m afraid this will rather make them pay more. Consumers will pay more at the end of the day, and this is not right.”

Another, Ben Boakye of the African Centre for Energy Policy (ACEP) opined: “For what we have seen that we are losing a lot of money.

There’s a cost of a 270 million that Ghana will have to pay, which is way above whatever we are saving as purported by the government. We don’t see value for money in this deal."

The government of Ghana is yet to issue a statement in defence of these criticisms.

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