The Public Utilities Regulatory Commission has stopped its quarterly review of tariffs.
Speaking at a news conference in Accra, chairman of the PURC Kwame Pianim, said utility companies will from henceforth have to apply to the PURC with detailed explanation for tariff adjustment.
Mr. Pianim said that, the abolition of the quarterly automatic adjustment of tariff was necessitated by the stability of exchange rate and macro economic indicators.
Mr. Pianim explained that the utility companies, request for reviews of tariffs will be considered by the commission in the light of changes in allowable legitimate costs, developments in the global energy industry and operational exigencies.
"Quality of service, value for money for the consuming public and the financial soundness of the utility companies will be borne in mind in any such review exercise."
The Commission will also continue to monitor developments in the utilities and as quality of service improves, tariff adjustment accordingly, he added.
He also said the PURC will not affect tariff increases, because the government continues to absorb part of the cost that should be passed on to the consumer.
He said the government has provided 204 billion cedis to cater for the tariff increases introduced this month by the utility services which should have been passed on to the consumers.
He said at a recently held stakeholders meeting, it was agreed that, the commission’s review of the tariff regime and structure did not provide conditions for equitable access to both electricity and water.
Mr. Pianim said, government, in fulfillment of its promise to provide investment to utility companies to minimize supply outages and to stabilize quality service, has arranged, over the medium term, to raise 1.5 billion dollars to revitalize the utility systems over the next five years.
"Government has allocated 311 billion cedis to the energy sector for the construction of a third Bulk Supply Point (BSP) in Accra, acquisition of prepared meters for ECG, and the rehabilitation of generation equipment for VRA".
"Another sum of 182. 9 billion cedis has been earmarked to finance the construction of an Accra East-West loop to help stabilize the flow of water in Accra."
