Public Utilities Commission Clears the Air

The Chairman of the Public Utilities and Regulatory Commission (PURC), Ghana, Nana Dr. S.K.B. Asante has said the commission would still play its supervisory role even under the Private Sector Participation (PSP) in the water sector.

"PURC will continue to set and monitor standards of performance for provision of services... Consumer Services Committees would be established to play a watchdog role in respect of utility service provision, including PSP."

Speaking at a press conference yesterday in Accra on the role and responsibilities of the PURC, the chairman said the Bureau of Consumer Services tasked to monitor quality services would intensify with the active participation of the regional centres.

Touching on tariff regulation under PSP, Dr. Asante said the commission would remain the sole tariff setting body, adding that tariff-setting guidelines for water, which will transparently address the investor interest, including PSP have been prepared.

The chairman said before a proposal for rate adjustment would be considered, PURC would scrupulously vet the level of investment and delivery of regulatory targets. "The rates that will be approved will enable the utility companies to recover only reasonable investment levels and efficient operational costs. The tariff level will be linked to quality of service to ensure that consumers get value for money and supply satisfaction."

Flanked by directors of the PURC, he assured consumers that the commission will not shirk its responsibility of addressing pertinent issues such as affordability of service to the impoverished and vulnerable. He added that such needs will duly be considered within the tariff structure to be evolved.

He said though one of the major functions of the PURC is to monitor standards of performance for provision of services, the commission cannot be blamed for the inefficiencies of the management of the utility providers.

According to him the commission sets the broad parameters or framework for operations of the utilities, however is not legally competent to hire and fire or discipline executives of utility companies or supervise the operations of the utilities. "The most PURC can do is to deny an application for increased tariff by an incompetent company, or impose sanctions against a service provider pursuant to a successful complaint."

Suggesting moves to ensure sustainability, he called on the government to inject capital into the utility companies for purposes of investment. He said in view of the past chronic under-funding, some of the deficiencies in utility services are due to poor equipment.

He called on the utilities to improve supply reliability, billing and collection of revenues, modernise management techniques and to re-examine and revamp their image regarding the pervasive attitude of customer unfriendliness and poor response to faults and complaints.

The chairman said the commission has developed a Transitional Plan to ensure that tariffs move from current levels to full cost recovery levels, accompanied by commensurate improvements in the quality of service. He said this is expected to be achieved over the next two years.

The PURC was set up under Act 538 to regulate the provision of utility services in electricity and water sectors. Entities whose operations currently fall within the Commission's purview are the Electricity Company of Ghana (ECG), the Volta River Authority (VRA) and the Ghana Water Company Limited (GWCL).

Among the functions of the PURC are, to provide guidelines on rates chargeable for provision of utility services; to examine and approve rates chargeable for provision of utility services and to promote fair competition among public utilities.