The Public Utilities Regulatory Commission (PURC) after a stakeholder’s consultation has increased electricity tariff by 27.15% and that of water by 21.55% effective 1st September, 2022.
It will be recalled that some Companies including the Volta River Authority (VRA), Ghana National Gas Company (GNGC), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company (EPC) and Ghana Water Company Limited (GWCL) sent a proposal to the PURC requesting for an increment in tariff.
The Commission also received proposals from the Ghana National Petroleum Corporation (GNPC) in respect of projected natural gas volumes and tariffs by gas supply sources.
The companies requested for very astronomical increases with GWCL demanding over 300% increase in end-user tariffs.
ECG and NEDCo proposed 148% and 113% increases respectively, VRA and GRIDCo proposed 37% and 48% increment respectively.
After receiving these proposals, the Commission carried out rigorous regulatory audit of processes and assets of Utility Service Providers, enabling it to adjust the Weighted Average Cost of Gas (WACOG) for power generation and end-user tariffs for electricity and water.
In balancing the interests of service providers and consumers, the PURC acknowledged that the very economic variables that have occasioned the steep increases proposed by the service providers also affect consumers.
The Commission admitted, however, that some level of increases in utility tariffs were inevitable if the nation was to avoid another dumsor and its attendant effects including job losses.
In a statement, PURC said, “The Commission therefore decided to increase the average end-user tariff for electricity by 27.15% and water by 21.55% effective 1st September, 2022.”
It explained that, “These rates, in view of the Commission, are sensitive and responsive to the positions of all stakeholders in the utility space in line with sections 3(c) of PURC Act 1997 (Act 538).”
Ghana| Atinkaonline.com| Porcia Oforiwaa Ofori