Commission Wants Upward Investment in Utilities

The Public Utilities Regulatory Commission (PURC) has called on the government to take a critical look at the issue of financing upfront, key investments of the utility companies.

This is the only way the companies can be assisted to improve on their performance, Mr Andrews Quayson, a member of the PURC said at a workshop in Kumasi on Tuesday on the transitional plan for electricity tariff rate adjustment and quality service issues.

The workshop is the first in a series PURC is organising in the regions to provide further insight into its programme of activities to create consumer awareness and appreciation of its role in the electricity sector.

Mr Quayson mentioned power generation, transmission and distribution systems as areas where attention needs to be focused.

He said a retrofit at Akosombo and the Takoradi expansion project for power generation would cost a total of 345 billion cedis.

The improvement of the Prestea-New Obuasi and the Aboadze-Volta transmission lines on the other hand would require 300 billion cedis while upgrading the distribution system through the installation of SCADA would need an investment of 780 billion cedis. SCADA is a technology for detecting faults immediately they occur. Mr Quayson spoke about the need to redefine the power sector development policy, support the West African Gas Pipeline Project and implement mechanism to ensure that ministries, government departments and agencies pay their utility bills promptly.

The utility companies on their part should optimise revenue collection, liaise with the PURC to rationalise tariff structure, carry out intensive public education on energy conservation and be more customer focused and friendly.

Mr Quayson said the PURC is committed to ensuring the financial viability of the utility companies through efficient cost recovery rates.

It would also encourage and promote competition in thermal power generation and undertake the necessary technical studies to help rationalise the tariff structure.

He asked the Energy Commission to complete the strategic national energy plan within the next two years and redefine the threshold for bulk customers in terms of energy and capacity in consultation with all stakeholders.

Mr Stephen Adu, Executive Secretary of PURC said acceptable levels of quality service are achievable only by a well- thought-out gradual mechanism which ensures that prices move in tandem with service improvement.