Dr. Ishmael Ackah
THE PUBLIC Utilities Regulatory Commission (PURC) has reviewed electricity tariff by 27.15% and water by 21.55% with effect from September 1, 2022.
Executive Secretary of the PURC, Dr. Ishmael Ackah, who made the announcement yesterday in Accra, said the reviewed tariffs will cover the period 2022 to 2025.
He said his outfit met with various stakeholders who tendered proposals for consideration, hence the new tariffs.
Such institutions included the Volta River Authority (VRA), Ghana National Gas Company (GNGC), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company (EPC) and Ghana Water Company Limited (GWCL).
The commission also received proposals from Ghana National Petroleum Corporation (GNPC) regarding natural gas volumes and tariffs by gas supply sources.
“These rates, in view of the commission, are sensitive and responsive to the positions of all stakeholders in the utility space in line with sections 3(c) of PURC Act 1997 (Act 538),” he told the media.
The review, however, falls short of the proposals presented by the utility companies such as the Electricity Company of Ghana, Ghana Water Company Limited and Ghana Grid Company Limited.
In balancing the interests of service providers and consumers, he said the PURC acknowledged “that the very economic variables that have occasioned the steep increases proposed by the service providers also affect consumers. The commission admitted, however, that some level of increases in utility tariffs were inevitable if the nation was to avoid another ‘dumsor’ and its attendant effects including job losses.”
While expressing gratitude to all stakeholders for their participation and inputs, he gave assurance that “the commission will continue to monitor the operations of the utility service providers to ensure value for money and quality of service delivery.”
Dr. Ackah announced that after this review, “the commission will implement its quarterly tariff review in line with its rate setting guidelines for quarterly review of natural gas, electricity and water tariffs.”
PURC, he said, will next year roll out a mechanism of monitoring the efficiency of utility companies, a departure from the current dependence upon reports from the service providers.
He continued that through the stakeholder consultations, the PURC explained their decision to the general public and key interest groups such as the Association of Ghana Industries (AGI) and the Trades Union Congress (TUC).
The last major review of tariffs was done in 2018, which he said resulted in a 17.5% reduction for residential and 30% for non-residential in electricity tariff. Since then, he said key macroeconomic variables have deteriorated, particularly since 2020, visiting adverse implications on the ability of utilities to keep the lights on and water flowing as he put it.
The review is intended to inure to the benefits of small businesses such as hairdressers, vulcanisers, barbers and many others, the PURC explained.
Present during the announcement were the PURC Chairman, Dr. Ebow Quagraine, and other board members.
By A.R. Gomda