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We’ve Not Taken Decision On Utility Tarrif Proposals- PURC

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The Public Utilities Regulatory Commission (PURC) says it is yet to take decision on the utility tarrif proposals submitted by the service providers in the country.

According to PURC, it is scheduled to engage stakeholders including government, Electricity Company of Ghana (ECG), Ghana Water Company Limited (GWCL) among others in the coming weeks over their proposed tariff increments after analyzing the proposals submitted for onward decision making.

A statement issued Wednesday May 11, 2022 and signed by Dr. Ishmael Ackah, Executive Secretary of the Commission said it will negotiate with the service providers and develop adjustments it finds acceptable in the current scheme of things.

The Electricity Company of Ghana (ECG) had proposed that its tariffs be increased by 148 percent for 2022 and with 7.6 percent average adjustments between the periods of 2023 to 2026.

The proposed sharp increment, according to ECG, is due to the gap between the actual cost recovery tariff and PURC-approved tariffs, as well as the cost of completed projects.
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The Ghana Water Company Limited (GWCL) also demands a 334 percent increase in tariff.

The GWCL, in its proposal, said over the years that the approved tariffs have not been fully cost-reflective.

These proposals have generated widespread conversation, with many Ghanaians expressing their disapproval of same.

However, the service providers maintain that the increment is necessary to keep them afloat.

For instance, the GWCL argues that while the average tariff per cubic metre in 2019 was $1.27, the same was reduced to $1.13 due to cedi depreciation.

This reason has affected its ability to repair and replace old and obsolete equipment and pipelines.

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