Stakeholders who were engaged by the Public Utilities Regulatory Commission (PURC) over proposals from the Ghana Water Company and the ECG for adjustment in tariffs have kicked against the move.
The ECG made a proposal to the PURC, requesting an increase in electricity tariffs by 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.
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“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.
About the same time, the Ghana Water Company Limited also demanded a 334% increase in tariff in their proposal.
Due to this, PURC decided to engage all stakeholders to examine and approve the electricity tariffs for the 2022-2027 multi-year tariff.
On Monday, May 16, 2022, the PURC began its engagement with stakeholders to collate views and suggestions on the proposals of the various utility companies for adjustment in tariffs.
At the meeting, many of the stakeholders rejected the proposals by the ECG and the Ghana water company, saying the tariffs will burden consumers.
Meanwhile, the consultations are still ongoing.
Read Also: 148% upward adjustment: PURC to determine “fate” of ECG by July 1
Ghana| Atinkaonline.com
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