COVID-19: Government could pay over GHC2.5 billion for electricity subsidy for Ghanaians

COVID-19: Government could pay over GHC2.5 billion for electricity subsidy for Ghanaians

- The Institute of Energy Security (IES) has projected a likely bill of $450 million with the absorption of electricity bills

- The Institute revealed that this is composed of a monthly bill of $120 million and service charge of $30 million per month

- It also stated that there is a possible situation of unstable power supply if the government refuses to resource power suppliers

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The Institute of Energy Security (IES) has predicted that the decision of the government to absorb the cost of electricity for consumers could lead to a $450 million cost.

The IES explained that the actual electricity bill could be $120 million a month and with service charges pegged at an estimated $30 million, it could result in a monthly bill of $150 million.

The Institute went on to say that the estimation is based on the national consumption of about 1,630 gigawatts per hour for a month and an average end-user tariff of about Ghp88 per Kilowatt-hour (kWh) for both residential and non-residential users.

READ ALSO: COVID-19: Local chief promises to pay 50% of electricity bill for subjects

Per a report by, the IES called on the government to ensure proper operations and maintenance of systems of the service providers by ensuring that all current and potential debts are cleared.

The IES earlier indicated that there is the likelihood of unstable power supply across the country in the coming days if the government fails to resource the service providers.

As part of a series of measures being implemented by the government in the wake of the spread of the coronavirus, the government announced a total absorption of electricity for the poorest of the poor.

It also stated that residential and commercial users would enjoy a 50% reduction with the use of the March 2020 bill as the benchmark. earlier reported that the Africa Centre for Energy Policy (ACEP) has raised concerns about the government’s decision to absorb 50% of the electricity bills of residential and commercial users for the next three months.

The Centre is convinced that the decision could be the final nail in the coffin of the debt-stricken sector which is already facing challenges.

ACEP revealed that the decision is likely to cost the government about GHC1 billion each month, bringing the total cost to approximately GHC3 billion.

READ ALSO: COVID-19 partial lockdown: Gov't to absorb water bills for Ghanaians for 3 months

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