President Nana Akufo-Addo
The Public Utilities Regulatory Commission (PURC) has approved reductions of between 10 and 30 percent for various electricity consumers effective 15th March, this year.
This was after extensive stakeholder consultations and detailed technical analysis of utility tariff proposals, as well as consideration of inputs and concerns of consumers.
The reductions, which are based on PURC’s 2015 Gazetted Electricity Tariffs, are only on the energy charges, while maximum demand and service charges will remain, Executive Secretary of the commission, Mami Dufie Ofori, announced in a statement yesterday.
Residential customers from March 15 will enjoy a reduction of 17.5 percent while non-residential customers will enjoy a 30 percent reduction.
Special load tariff customers (LV, MV & HV) will enjoy 25 percent reduction while the mines will get a 10 percent reduction.
The PURC said “water tariffs will remain the same and a decision will be taken in the coming weeks.”
While appreciating its various stakeholders, who made various inputs to arrive at its present decision, the PURC said it would continue to implement its Automated Adjustment Formula (AAF) in order to address changes in operational conditions.
The Commission explained further that it considered consumer interest, investor interest, economic development, revenue requirement, natural gas prices, re-negotiation of power purchase agreements (PPAs), as well as the prudent and efficient costs of the operations of the utility companies.
“The commission also took into consideration the impending Private Sector Participation (PSP) concession within the electricity distribution sector.”
It added that it received tariff proposals from the Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company Limited (ECPL) and the Ghana Water Company Limited (GWCL).
ECG, it would be recalled, requested 64 percent increase from its current GHp22 per unit to GHp36 per unit while Ghana Grid Company (GRIDCo) wanted a 31 percent increase from its current GHp5.04 per kilowatt per hour to GHp6.58 per same unit.
In the case of the Northern Electricity Distribution Company (NEDCO), it called for a 7 percent increase from its current GHp0.631 per unit to GHp0.0675 per unit.
“In line with Section 17 (2) of the PURC Act 1997, (Act 538), the commission investigated the cost of production of all sources of electricity supply to distribution companies.
About a month ago, the Ghana Water Company Limited and Electricity Company of Ghana (ECG) demanded 200 percent increment in tariffs.
The 2018 budget presented by Finance Minister Ken Ofori Atta in November 2017 also projected 13 percent reduction for residential and non-residential consumers.
Government’s Effort
On January 15, this year, President Nana Addo Dankwa Akufo-Addo announced that non-residential users of electricity in the country would enjoy an average of 14% reduction in electricity tariffs.
According to President Akufo-Addo, “Government has succeeded in normalising the power situation in the country and we now want to boost private business in our country.”
He promised at the opening of the 8th Salon Academy of the National Association of Beauticians and Hairdressers held at the Mensah Sarbah Hall, University of Ghana, Legon that from January, the non-residential tariff rate would be reduced by an average of 14%.
“For barbers, it is being reduced by 18%; for hairdressers and beauticians, 15.7%, and for tailors, 9.8%.”
President Akufo-Addo continued, “An average bill last year was GH¢562 a month. With this reduction from January, it is coming down to GH¢473 a month, which means GH¢88 has been taken from the electricity tariff that you pay. We want to encourage private business and make businesses stand on their feet.”
By Samuel Boadi