Dr. Ishmael Ackah
The Public Utilities Regulatory Commission (PURC) has indicated that should there be a tariff adjustment, it would be “business-friendly, especially for Small Medium Scale Enterprises (SMEs).”
Executive Director of the Commission, Dr. Ishmael Ackah hinted at a tariff increment at an interaction with media personnel in Accra.
He, however, did not provide the effective date for the adjustment and also declined to mention the percentage increment.
He said the PURC acknowledges the economic challenges utility consumers face but this must be juxtaposed with the need for the providers to stay in business.
The PURC boss also stated that in coming up with the new tariff, benchmark losses incurred by the utilities, such as technical losses and illegal connection are taken into consideration.
He assured that very transparent processes have been used to arrive at the yet to be announced tariffs.
He used the occasion to announce that the Commission will be celebrating its 25th anniversary in September.
“The celebration will be characterised by consumer clinics to educate the public about our mandate,” he said.
No Tariff Increment yet
Meanwhile the PURC has said that no decision has been reached yet with regard to increase in utility tariffs effective September 1 as earlier reported.
According to PURC, any decision to increase the tariffs will be duly communicated.
The Director of Research and Corporate Affairs of PURC, Dr. Eric Obutey said, “the decision has not been made as to whether or not there will be an upward or downward adjustment.
Once that decision is arrived at it will be communicated by the Board of the PURC to us the Secretariat and we will effectively communicate to the public.”
He noted that in announcing any tariff increase, “we will look at the depreciation rate, the exchange rate, inflation rate. So many other factors, including the hearings that we held across the country.”
The ECG is demanding a 148% increase in tariff. A proposal from the power distributor, submitted to the PURC, wants the adjustment to cover the period 2019 and 2022.
It also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).
The Ghana Water Company Limited is also demanding a 334% increase in tariff. The GWCL in its proposal said over the years, the approved tariffs have not been fully cost-reflective.
But consumers of water and electricity have asked the utility companies to significantly reduce the percentage they are demanding with regard to the upward adjustment in tariff.
The consumers said the increase in utility tariffs is too high.
By Jamila Akweley Okertchiri