The rise in dollar-denominated oil prices and devaluation of the cedi led to significant operational losses in utility companies in Ghana, affecting the fiscal viability of energy utilities and, indirectly, key PRSP goals such as the extension of electricity to rural areas. Three major electricity tariff increases between 2001 and 2003 raised public debate and made further adjustments in the sector a very sensitive issue. This paper confirms reliance on a lifeline tariff to protect poor consumers reflected in PRSCs 1& 2, as well as detecting public assumptions on the electricity supply in Ghana and dispelling common misperceptions in the energy sector in general and the utility reform in particular.
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