Remove taxes and levies to make electricity affordable – CIPDiB CEO

Mr Elikplim Kwabla Apetorgbor, the Chief Executive Officer (CEO) of the Chamber of Independent Power Producers, Bulk Consumers and Distributors (CIPDiB), Ghana, has called for the removal of what he described as inessential taxes contributing to high electricity tariffs.

He mentioned the taxes as Ghana Education Trust Fund (2.5 per cent), the National Health Insurance Levy (2.5 per cent), the Value Added Tax (12.5 per cent), the Public Lighting – Street lighting (3 per cent) and the National Electrification (2 per cent).

Mr Apetorgbor in a statement signed and copied to the Ghana News Agency in Accra on Saturday said, the levies and charges inconvenienced and burdened consumers and weakened the capacity for growth as a nation and made distribution companies uncompetitive.

He said the complete removal of these taxes and a reduction in gas price would make Ghana’s position as one of the benchmarks in the sub-region and bring visible economic relief to the country,” he said.

Mr Apetorgbor said End User Electricity Tariff across the West African sub-region was a major concern and one of the capital reasons for the stagnated industry growth.

He said the subject required an objective political study of the cost of electricity generation, transmission and distribution by conducting an analysis of variance, and benchmarking the most competitive economies in the sub region or the world.

The CEO in the statement said, power distribution companies, the Electricity Company of Ghana, Northern Electricity Distribution Company and Enclip Power Company procure power in bulk from generators, ‘Independent Power Producers and the Volta River Authority’ through transmission service providers, Ghana Grid Company Limited (GRIDCo) and deliver to consumers.

“Power is in most cases delivered to end users at the voltage at which it is usable, hence the Distribution Value Added (DVA). The power distributors provide metering, billing and information services to the consumers therefore, the end user tariff is equal to Bulk Generation Charge, Transmission Service Charge (TSC), Distribution Service Charge (DSC) or DVA.

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