Energy debt will not be affected by GHC1 billion relief for electricity - Ministry

Energy debt will not be affected by GHC1 billion relief for electricity - Ministry

- The Ministry of Energy has refuted claims that the GHc1 billion electricity reliefs would add to Ghana's power sector debt

- The ministry earlier indicated that the government is absorbing almost GH¢8.5 million per month for lifeline customers

- Presently, Ghana’s energy sector debt is believed to currently stand at GH¢15 billion

Our Manifesto: This is what YEN.com.gh believes in

The Ministry of Energy has dispelled rumours that the GHC1 billion to be spent in subsidizing electricity tariffs would affect Ghana’s energy sector debt.

In an interview, the Head of Communications of the ministry, Nana Damoah, explained that the funds are to be used for the payment of the electricity tariffs for the period of the reliefs.

Addressing Ghanaians for the sixth time in relation to the outbreak of the coronavirus, President Akufo-Addo announced that the government would absorb the portions of the electricity bills Ghanaians pay.

READ ALSO: COVID-19: ACEP predicts doom as government absorbs 50% of electricity debt

He explained that the poorest of the poor would not pay electricity bills for the months of April, May and June in 2020.

Residential, Industrial and commercial users, will, however, pay 50% of their usual bills, using their March 2020 bills as the benchmark.

GhanaWeb quoted the Energy Minister, Peter Amewu, as saying that at the current tariff level, the government is absorbing almost GH¢8.5 million per month for lifeline customers.

Some stakeholders in the energy sector have earlier argued that the reliefs would worsen Ghana’s high energy debt.

Ghana’s energy sector debt is believed to currently stand at GH¢15 billion.

YEN.com.gh earlier reported that the Minister of Energy, John Peter Amewu, has revealed that the government would pay GHC1 billion for the three months of relief from electricity bills by consumers. According to him, the electricity produced would cover 4.8 million metres across Ghana.

READ ALSO: COVID-19: Fitch predicts possible slowdown in Ghana's power sector

Enjoyed reading our story? Download YEN's news app on Google Playstore now and stay up-to-date with major Ghana news!

51-year-old Fred Drah recovers from COVID-19 in Ghana | #Yencomgh

Subscribe to watch new videos

Do you have a hot story or scandal you would like us to publish on YEN.com.gh? Please contact us on Facebook or Instagram now

Source: Yen

Mailfire view pixel