Ghana: Water, Electricity Tariff Increment Will Be Announced Before August Ending—PURC

The Public Utilities Regulatory Commission (PURC) is set to announce new tariffs for water and electricity utilities before the end of August 2022.

The new water and electricity utility tariffs were supposed to have been announced in July, but the PURC postponed it on two occasions with an explanation that it identified several issues during the analysis and examination of the tariff proposals, which necessitated further deliberations and engagements with the utilities to ensure that such pertinent issues were addressed.

It is not clear as to what percentage of increment the Commission will announce but some industry watchers have told energynewsafrica.com that the increment could be between 35 and 40 per cent.

The ECG, which is responsible for power distribution in the southern part of Ghana, is demanding a 148 per cent increment for their distribution service charge from Ghp16.109/kWh to Ghp39.95 /kWh while NEDCo, which is responsible for the northern part, is demanding a 113 per cent increment in their distribution service charge from Ghp31.503/kWh to Ghp35.63/kWh.

State power producer, VRA, is demanding 37 per cent from Ghp28.227/kWh to Ghp38.687/kWh while GRIDCo is demanding 48 per cent.

Enclave Power Company is also demanding 38 per cent from Ghp31.530 /kWh to Ghp43.30/kWh.

Meanwhile, Ghana Water Company is asking for 300 per cent in tariffs from Ghs7.2/M3 to Ghs28.2/M3.

Speaking to a section of journalists who report on energy in Accra, on Friday, the Executive Secretary of PURC, Dr. Ishmael Ackah, said: “Yes, the tariff will be announced this month,” in response to a question on when the new tariff would be announced.

According to him, the Commission acknowledges the economic challenges utility consumers face but “this must be juxtaposed with the need for the providers to stay in business.”

Dr. Ackah stated that in coming up with the new tariff, benchmark losses incurred by the utilities such as technical losses and illegal connections, are taken into consideration.

He said transparent processes have been used to arrive at the yet-to-be-announced tariffs.

He used the occasion to announce that the Commission would be celebrating its 25th anniversary in October.

“The celebration will be characterised by consumer clinics to educate the public about our mandate,” he said

Source: https://energynewsafrica.com