28.2 C
Accra
Wednesday, April 29, 2026
HomeNewsUsing generators may become cheaper option – Ben Boakye

Using generators may become cheaper option – Ben Boakye

Date:

The Executive Director of the Africa Center for Energy Policy (ACEP), Dr. Ben Boakye says regular tariff hikes in Ghana may compel many to rely on generators since it may be cheaper than relying on the national grid.

According to him, this is an impending challenge that needs to be considered in the debate on whether utility tariffs should be increased on not.

Mr. Boakye said increasing the tariffs Ghanaians pay to access electricity and water is not the ultimate solution to the challenges utility companies face.

“The more tariffs we pile up, the more competitive the grid becomes… Before the oil prices went up, generating your own electricity was cheaper than hooking onto the grid. We are now at the point where we are almost at par. So if you increase it [tariffs] and it becomes much more beneficial to turn on your generator, those who have generators will use it and the grid will become redundant and that also comes with its own cost,” he said.

He suggested that utility companies, particularly those within the electricity distribution chain, should concentrate on fixing challenges within their distribution system rather than chasing after tariff adjustment which will amount to nothing if the systemic problems are not fixed.

“Some balancing act needs to be done but most importantly, fixing ECG and the distribution problem is what is critical at this point because if power is sold, and you are not able to recover the money, you cannot pay GRIDCo, you cannot pay ECG for the system to function,” he added.

Ben Boakye suggested that the financial issue can be addressed by getting an investor to help improve the operations of the power company.

Don’t increase tariffs – CUTS International

Meanwhile, Appiah Adomako, the Director of CUTS International, an organization working in the area of consumer protection, has kicked against the proposal for tariff increment.

He said the utility companies making such demands should be instructed by the Public Utilities Regulatory Commission (PURC) to fix the financial loopholes in their systems before their proposal is considered.

“I still think that the regulator, the PURC, should allow these utility companies to go back and fix all the things that can be fixed at their end, collect all revenues that are outstanding before allowing them any increase in tariffs.”

He said the demand for an increment in tariffs must be thoroughly scrutinized by the PURC and must be granted based on sound reason.

- Sponsored -spot_imgspot_img

Disclaimer: The views, opinions, comments, and statements expressed by readers and contributors on this platform are solely their own and do not necessarily reflect those of Imax Media Group or its affiliates.

Send your news stories to editor@max.com.gh and via WhatsApp on +233 506-367-196
Join our WhatsApp channel for the latest news and updates.

Max TV
Max TVhttps://max.com.gh
Ghana’s Leading Digital Television And Terrestrial Box In Sports, Entertainment And More.
- Sponsored -scratch for win

Stay Connected

562,687FansLike
2,463FollowersFollow
583,200FollowersFollow
51,019FollowersFollow
95,943SubscribersSubscribe

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related Stories

Musician Wiafe SwiitLypz Drops New Song “JooJo,”

Wiafe SwiitLypz is setting the tone for good vibes...

Dormaahene Donates to Family of Slain Footballer Dominic Frimpong

Osagyefo Oseadeeyo Agyemang Badu II, Dormaahene, has generously donated...

This Is How Much Ghana Would Get At 2026 FIFA World Cup

Ghana will earn $12.5 million for participating at the...

Tom Saintfiet Leaves Mali

Tom Saintfiet is no longer the head coach of...

FIFA Selects Armenia & Georgia to Host 2029 U-20 World Cup

The 2029 FIFA U-20 Men's World Cup will be...

Two Suspects Arrested In Missing Couple’s Case

Two suspects have been arrested in connection with a...

Thierry Henry Warns Arsenal Ahead of ATL Clash

Arsenal legend, Thierry Henry, has warned the Gunners that...

Maxbuy to Extend Goodness to East Legon

Still Ghana’s largest electronic retailer, Maxbuy Ghana, is set...

THRILLER IN PARIS: PSG Beat Bayern 5-4 In UCL Semis 1st Leg

Paris Saint-Germain beat Bayern Munich 5-4 in the first...

Perez Prefers Mourinho for Madrid Job

Jose Mourinho is the preferred candidate of Real Madrid...