Steve Hanke, a professor of applied economics at Johns Hopkins University in the United States, has criticized President Nana Akufo-Addo for how he has handled the nation’s spiraling inflation rate.
The eminent economist observed on September 5 on Twitter that due to exorbitant inflation, Ghanaians no longer understand goods prices.
He claimed that the president’s decision to impose increased energy tariffs in response to Ghanaians’ distress as they struggle with inflation pressures will ultimately result in an increase in the cost of life.
“Ghanaians no longer understand the cost of anything due to the country’s extremely high inflation.
What is the president’s plan?
ADDITIONALLY raise living expenses with increased electricity pricing.
I currently estimate GHA’s inflation to be a crushing 81% per year,” Prof. Hanke tweeted.
On Monday, September 5, 2022, new electricity rates were effective.
The Electricity Company of Ghana (ECG) may recall that on August 15, the PURC authorized a significant tariff revision, with the new rate set at 27.15 percent.
Residential consumers are the hardest hit, and will cumulatively pay 36.12 percent more for what they consume on zero to over 600 units.
â€œIt is important to note that the average percentage increase is on energy consumption only, therefore the addition of statutory levies and other fixed charges will increase the average percentage announced by the PURC. In effect, individual customersâ€™ tariff percentage increase will depend on customer classification and consumption category. Excessive lifeline beneficiariesâ€™ consumption has been pegged at 30kWh, according to the new bands for residential customers.
â€œECG has catalogued all unit consumption and the expected cost in a â€œReckonerâ€ which clearly explains how the tariff is applied and billed. This will be displayed at all our districts and customer service centres nationwide to guide customers on their electricity purchases, a statement by the ECG said.