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ROLE OF TARIFFS AND SUBSIDIES IN GHANA's ENERGY MARKET: WHO BEARS THE COST AND BROADER PICTURE.

  Who Pays the Price? Understanding Tariffs , Subsidies , and Affordability. Ghana's energy market is shaped by an interplay of tariffs and subsidies, which impact both consumers and producers. While tariffs help recover costs and ensure sustainability, subsidies aim to make energy affordable for citizens . However, balancing these financial mechanisms presents economic and political challenges.In this article we will explore how tariffs and subsidies function in Ghana's energy sector, who bears the costs, and the broader implications for affordability and economic growth. Energy tariffs in Ghana are determined by the Public Utilities Regulatory Commission (PURC) and reflect factors such as generation costs , transmission , distribution , and government policies . Their primary goal is to establish fair pricing that covers production costs while avoiding excessive burdens on consumers Types of Tariffs Residential Tariffs - Prices set for households, often structured in tier...