148% upward adjustment: PURC to determine “fate” of ECG by July 1


The Director of Research and Corporate Affairs at the Public Utilities Regulatory Commission (PURC), Dr. Eric Obutey, has stated that the PURC may come out with a determining point to okay or reject the Electricity Company of Ghana (ECG)’s proposal of 148% upward adjustment by July 1, 2022.

That, he said would be after a broader consultation with stakeholders.

The ECG made a proposal to the PURC, requesting it to increase electricity tariffs by up to 148 per cent covering 2019 to 2022.

The state power distributor also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).

They attributed the high increase in the Distribution Service Charges.

“The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase on the current DSC1 in 2022 and an average increase of 7.6% year on year from 2023 to 2026.”

The management of ECG also indicated that its financial sustainability is important as it impacts the entire energy sector.

“Over the next five years, the DSC will need to increase consistently (average of 7.6%) to cover distribution cost. It is expected that the approved BGC would correspond with the commercial terms of PPAs (Power Plant Agreements)”, it added.

Read Also: ECG proposes 148% upward adjustment in electricity tariffs

Speaking on Atinka TV’s morning show, Dr. Eric Obutey said the PURC was engaging stakeholders on the proposal to arrive at a determining point.
He said they are going to consider operational expenses, system loses, collection ratio, adding that if the ECG are able to meet their target, then they are good to go.

“They brought us the proposal and we are now working on it. as of now, we have not yet determined what tariff should be accepted. We are now doing a stakeholder consultations with AGI, we will also do a public hearing next week at Legon and after that, we can say this is the determining point of the tariff,” he said.

When asked when there would be an outcome of the stakeholders consultation, Dr. Eric Obutey said, “Between now and June, we will be done with the stakeholder’s consultations and so by July 1, we are expecting the Commission to come to a decision point.”

Ghana| Atinkaonline.com| Porcia Oforiwaa Ofori


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