Ghana To Announce New Tariff For Electricity, Water In July

Ghana is expected to review its electricity and water tariffs in July this year.

The last time the West African nation reviewed its utility tariff was in July 2019 when electricity saw an 11.7 per cent upward review.

This was after electricity cost was reduced by 17.5 per cent for residential consumers, while non-residential consumers enjoyed 30 per cent reduction.

Special load tariff customers (those who use more power, such as industries) also enjoyed a 25 per cent tariff reduction, while the mines had a 10 per cent reduction.

Speaking to journalists in the Western Region of Ghana, the Executive Secretary of the Public Utilities Regulatory Commission (PURC), a regulator of utilities, Dr. Ishmael Ackah, said the Commission is currently reviewing all the proposals received from the utilities and would arrive at a decision and follow it with an announcement in July.

According to him, the announcement would depend on the Ghana Utility Performance Index satisfaction which the PURC would publish this year.

“This year is a major tariff review year. Before we start, we develop guidelines, and in these guidelines, we go around to engage utilities, consumers and other groups after which we ask utilities to submit proposals. These proposals have been submitted. In coming out with the tariff, we look at the proposals; we look at microeconomic indicators, exchange rates and others. We look at customer services, which is how utilities over the period have also responded to customer concerns.

“Let me add that this year, PURC is going to start publishing what we call the Ghana Utility Performance Index looking at the regional performance based on customer satisfaction and the number of indicators. So, we look at all these things before we come out with the tariff. Where we are now is that all utilities have submitted their proposals to PURC. We have started doing the initial analysis, and as we speak, it will be very difficult to tell you whether it will go up or come down, but we hope to announce the tariff in July,’’ he said.

Dr. Ackah said the Commission would engage all consumers, the media and civil society before coming out with the new tariff.

He, however, said he did not foresee much impact on the tariffs from the increment in the prices of petroleum products.

“When we look at the generation mix, we have the hydro and we have thermal plants, but most of them use natural gas. I think we have only one plant using petrol now, and then, we have the solar system contributing about one per cent. So if there are any changes in gas price, then, it is going to affect the tariff because we have only one plant using petrol…yes, petrol can have some effect, but it is just one plant, so it may not be as much as gas if there are changes in gas price,“ he added.

Source: energynewsafrica.com