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Government has agreed to reduce electricity tariffs by 45% and 50% for lifeline consumers and vulnerable groups.

The relief will translate into the following rates: 0-50 = 45% 51-300= 50% This means all consumers between the 0-50 band will have a 45% reduction in their electricity tariff while the 51-300 band will have 50% reduction. Tariffs for all other consumption bands remain unchanged.

This was contained in the Memorandum of Understanding (MoU) between government and Organised Labour on the electricity tariffs and energy sector levies issued on Wednesday.

“As agreed in 2013, the stakeholders have renewed their commitment to the implementation of the Automatic Tariff Adjustment to avoid the large increases associated with non-implementation and its effect on incomes of households and businesses,” the MoU added. 

The MoU further directed the ECG to within the next two weeks rectify all billing anomalies associated with the tariff adjustment that took effect from 14th December, 2015. Organised Labour was pushing for a blanket reduction from 59.2% to 50% in the tariffs but after weeks of maintaining its stance, government decided to reconsider the increases for consumers within the lowest band.

Organised Labour about a week ago embarked on a nationwide demonstration to pressure government to yield to their demand. They had also demanded a 50% increase in salaries of public sector workers.