Free electricity for Ghanaians could worsen power sector challenges. The rich are the ones enjoying most – ACEP

The Africa Centre for Energy Policy (ACEP) believes Government’s decision to give its citizens free electricity by subsidizing it in this coronavirus era could worsen the power sector.

They also believe the rich are the ones benefiting the most because they have the resource to afford a separate meter and fall below the 50kwh a month standard issued by the government.

“The challenge Ghana has had with electricity subsidy for the vulnerable in society is poor targeting. A large proportion of households described by the president as ‘the poorest of the poor’ do not benefit from lower lifeline tariffs because many of them live in compound houses.”

“These people consume higher than the base unit of 50kwh a month, rendering the poor unable to enjoy the lifeline tariff. Rather, consumers who are able to procure separate meters and stay within the 50kw consumption band, typically not the poor, benefit from the lifeline tariff,” ACEP argued in its statement.

Nana Addo recently absorbed 50% of electricity bills for commercial users and 100% for those who use it from 0-50kilowatts in his fight against the coronavirus.

Source: Citinewsroom.com