A possible increase in electricity rates after the implementation of the Emissions Levy has been alluded to by the CEO of Independent Power Generators, Ghana (IPGG).
Hence, a thorough examination of electricity generation tariffs has been demanded by Dr. Elikplim Kwabla Apetorgbor.
He clarified in a statement how a review of this kind would safeguard power producers’ financial commitments.
He said rates should be raised in order to compensate for increased operating expenses brought on by the Emissions Levy’s adoption.
The carbon dioxide equivalent emissions from the electricity producers are subject to a charge of GHS100 per tonne under this law.The cost of building up the production of energy will increase as a direct result of this regulatory incidence on the power producers.
“Like the downstream petroleum sectors, power plant management and operation are sensitive to costs. The fee will specifically be added to the power plants’ growing running costs, he said.
“To ensure the predictability of the cash flow responsibilities of the power producers, an equal measure of review of the electricity generation tariff is required following the introduction of the Emissions Levy Act, 2023.
“In order to maintain operational sustainability and reliability, this adjustment is necessary to cover the increased operational costs caused by the imposition of the Emissions Levy, Act 2023 (Act 1112).”
