Mami Dufie Ofori (2nd left) addressing the media
The Public Utilities Regulatory Commission (PURC) has approved a 8.01 percent increase over the 2018 cost for water.
According to the PURC, the new tariff is for 2019/2020.
The PURC briefed journalists at a press conference on Monday, June 24, 2019, that the new tariff would take effect from July 1, 2019.
Executive Secretary of the PURC, Mami Dufie Ofori, who made the announcement to journalists, said the adjustment was done taking into account prudent tariff review.
She said the new tariff adjustment took into account the Ghana Water Company’s cost of electricity, chemicals and the US Dollar and Ghana Cedi exchange rate.
It would be recalled that in September 2018, the PURC directed the Ghana Water Company Limited (GWCL) to reduce water tariff by 10.08 percent.
A release issued by the Executive Secretary to the Commission at the time observed that GWCL was in breach of Section 11 of the PURC Law (Act 538, 1997).
The PURC had notified GWCL of its non-compliance to tariff decision and regulatory directives in relation to the Teshie Desalination Plant operated by Befesa Desalination Developments Ghana Limited, resulting in the directive for tariff reduction.
Justification
Justifying the 8.01 percent increment, the Executive Secretary said due to the compliance by Ghana Water Company Limited to the Commission’s Regulatory order number GWCL012018 dated September 06, 2018, the Commission restored water tariffs to the July 15, 2018 rates which is the basis of the increase.
She also justified PURC’s decision to also increase electricity cost by 11.17 percent for 2019-2020.
According to her, “in arriving at this decision, the PURC took into consideration several issues. Key amongst them are the following: the ECG/PSP Process, Projected Inflation Rate, Ghana Cedi/Dollar Exchange Rate, Prudent Cost of Operation of Utility Companies, Projected Electricity & Water Demand for the 2019-2020 tariff period.”
She reiterated that “the key objective of the tariff review was to sustain the financial viability of utility service providers as well as ensuring delivery of quality service to consumers.”
BY Melvin Tarlue