Government Communications Minister Felix Kwakye Ofosu has explained that the recent hikes in electricity and utility tariffs are linked to a binding agreement signed between the previous New Patriotic Party (NPP) administration and the International Monetary Fund (IMF).
Speaking on Asempa FM’s Ekosii Sen show, Mr. Kwakye Ofosu said that between 2023 and 2024, the NPP government increased power tariffs by 52 percent as part of IMF-backed conditions.
He noted that the agreement required quarterly tariff adjustments and major reviews to account for inflation, production costs, and exchange rate pressures.
According to him, a significant tariff adjustment made around September or October last year was aimed at improving electricity access and supporting capital expenditure in power generation.
“Between 2023 and 2024, under the NPP, power prices were increased by 52%. As part of the conditions set by the IMF, the government agreed to implement quarterly tariff adjustments and a significant tariff review to recover costs related to inflation, production expenses, exchange rates, and other factors.
“Last September or October, we carried out a major tariff adjustment based on improvements in access to electricity and capital expenditures for power generation, which the NPP had consented to. The IMF collaborates with the government, and once an agreement is made, it must be honoured. This is a binding agreement established by the NPP with the IMF. Such measures are necessary; otherwise, we would continue to accumulate debt,” he stated.
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