2022 Budget: Consumers may witness reduction in power tariff says Finance Minister

Finance Minister Ken Ofori Atta

Government has reached agreements with some Independent Power Producers (IPPs) to convert power plants to tolling structures, switch to natural gas, as well as reduce tariffs, Finance Minister Ken Ofori Atta has said.

This is expected to result in considerable savings to Government and the Nation over the remaining lifespan of the PPAs.

Delivering the 2022 Budget Statement and Economic Policy of Government in Parliament in Parliament on Wednesday (17 November), said government will also connect some 2,401 communities to the national grid next year.

“Mr. Speaker, to ensure power is affordable for industrial, commercial and residential use, Government, in collaboration with key stakeholders, continued with the renegotiation and restructuring of Power Purchase Agreements (PPAs). “

“Government has reached agreements with some IPPs to convert power plants to tolling structures, switch to natural gas, as well as reduce tariffs. This is expected to result in considerable savings to Government and the Nation over the remaining lifespan of the PPAs. These savings are expected to come from a combination of reduced capacity and energy charges across the portfolio.”

He added “..In pursuit of The President’s aspiration to achieve universal coverage of electricity by 2024, a total of 162 communities were connected to the national grid thereby increasing the national electricity access rate from 85.17 percent in 2020 to 86.63 percent in 2021. Connections to another 512 communities are at various stages of completion.”

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