Adopt graduated system fordebt collection - Government informs PURC 



Government has urged the Utilities and Regulatory Commission (PURC) to cut at least 35% of the upcomingelectricity tariff adjustment dueto the economic difficulties Ghanaians are currently facing.

Before the electricity company plans to make annual changes in the quarter, officials will likethe regulator to be discussed in its efforts to eliminate the costsoutstanding use of light carriers. Foreign exchange debt from power producers will increase by about 1.2 billion yen due to the non-implementation of the 44% additional tariff during the last exchange window.

While the service providers requested a 44% increase to clear outstanding bills, the PURC allowed a 29% increase. The remaining 15% will have received about ¢1.2 billion in additional debt since then.

The leaders of independent power producers will threatento close their plants if thegovernment does not pay their debts. Government sources say that although the government is keen to avoid power cutsfrom the shutdown, it is cautious to allow the PURC to introduce the 27.9% increase required in the upcoming window to clear other debts.


Reports say the government late Tuesday urged the PURC to postpone part of the plannedincrease until economic conditions improve. Althoughthe cost of living is slowly decreasing after the recent expansion, government sources say that the situation should be able to improve before all debts are paid.

The postponement is expected to allow service providers toclear some of their costs while stocking Ghanaians for the period. IMF funds 

The government is asking the Fund for $3 billion to boost its struggling economy.

On Friday, IMF managing director Kristalina Georgieva said that Ghana's governmentcreditors have given assurances for IMF members to considersigning the loan. The Minister of State for the Ministry of Finance, Mohammed Amin Adam, told Reuters on Sunday that the first tranche is expected to arrive next week. 

"We expect an agreement on Wednesday. With the compensation, there will be $ 600 million as the first immediately after confirmation.

He said that the second part of $600 million will be approved after the first evaluation of the program has been successfully completed, in November or December, and the remainder will be distributed in the amount of $360 million after the half-year evaluation.

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Halima Baidoo

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