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Akufo-Addo’s plan for sky-high inflation is more increase in electricity tariffs – Prof Hanke

Professor of Applied Economics at the Johns Hopkins University-USA, Steve Hanke, has taken a dig at President Nana Akufo-Addo over his handling of the country’s skyrocketing inflation rate.

In a Twitter post on September 5, the renowned economist noted that Ghanaians do not know the price of products anymore as a result of sky-high inflation.

He said the president’s response to the plight of Ghanaians as they reel under inflation pressures has been to slap new tariffs on electricity which ultimately will lead to an increase in the cost of living.

“Thanks to sky-high inflation, Ghanaians don’t know the price of anything anymore. What’s Pres. Akufo-Addo’s plan? Hike up living costs EVEN MORE with new electricity tariffs. Today, I measure GHA’s inflation a punishing 81%/yr,” Prof Hanke tweeted.

Background

New electricity tariffs kicked in yesterday September 5.
It will be recalled that PURC approved a major tariff review for the Electricity Company of Ghana (ECG) on August 15 with the new rate set at 27.15 percent

Residential consumers are the hardest hit, and will cumulatively pay 36.12 percent more for what they consume on zero to over 600 units.

“It is important to note that the average percentage increase is on energy consumption only, therefore the addition of statutory levies and other fixed charges will increase the average percentage announced by the PURC. In effect, individual customers’ tariff percentage increase will depend on customer classification and consumption category. Excessive lifeline beneficiaries’ consumption has been pegged at 30kWh, according to the new bands for residential customers.

“ECG has catalogued all unit consumption and the expected cost in a “Reckoner” which clearly explains how the tariff is applied and billed. This will be displayed at all our districts and customer service centres nationwide to guide customers on their electricity purchases, a statement by the ECG said.

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