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COSECA, an energy-focused think tank, has urged the government to ensure that the increased hydro generation, currently being experienced due to the optimal operation of the Akosombo Dam, translates to direct benefits for consumers.
The group contends that hydropower is a more cost-effective energy source compared to others, and therefore, the public should be shielded from unnecessary costs.
In a press release issued on Monday, October 30, COSECA called on the government to consider reducing electricity tariffs.
“Our recent evaluation has revealed some concerning findings: despite the plentiful rainfall this year, which has enabled optimal hydro generation, the benefits have not reached the citizens, even though they have borne the brunt of the excessive rains.”
“The very rains that have led to flooding for everyday Ghanaians have ironically not improved the energy mix to include a higher hydro component, which could potentially lead to reduced tariffs for the benefit of Ghanaians.”
“COSECA strongly believes that the energy mix needs to be optimized to ensure that the advantages of increased hydro generation are passed on to the people of Ghana, rather than being directed towards the export market.”
The group therefore called on the government, through the Public Utilities Regulatory Commission (PURC), to rectify this discrepancy by implementing an automatic adjustment mechanism.
“This situation must be rectified using an automatic adjustment mechanism to redistribute any over and under-recoveries to the benefit of Ghanaians.”
“We have also observed with concern that the performance of Distribution Companies is influenced not only by their internal operations but also by external factors beyond their control.”
“For instance, the lack of a level playing field in the wholesale market among key players in the generation and transmission sector creates an uneven competition that puts distribution sector participants at a disadvantage.”
