ACEP flays utilities regulator

The Africa Centre for Energy Policy (ACEP) has lashed out at the Public Utilities and Regulatory Commission (PURC) following the regulator’s directive to the Electricity Company of Ghana (ECG) to suspend its billing software.

The decision by the PURC follows uproar from consumers regarding excessive charges for power usage. According to a statement issued by the policy think-tank, implementing the PURC’s decision immediately will be very chaotic -- to the extent that ECG will have to completely uninstall the new software and reinstall the old one.

“A freeze on billing on the other hand will cut power to many consumers, particularly prepaid consumers until the software is corrected,” the statement signed by Dr. Mohammed Amin Adam, Executive Director, ACEP said.

The directive to the ECG to suspend its billing software is an admission by the PURC power consumers have been overbilled, the ACEP statement stated. “Suspension of the software is not enough. PURC should compel ECG to comply with the section of the PURC Act that requires the utility company to adjust consumers’ next bill with the excess amount or pay cash to them,” Dr. Amin Adam said.

According to the PURC Act, failure by ECG to comply with its (PURC) directive is an offence that is punishable by a fine or imprisonment.

PURC must do more

ACEP in the statement issued last week further urged PURC to ensure that the ECG compensates all customers who have been overbilled or wrongfully disconnected.

The billing problems have added to the burden of higher levels of tariffs already paid by consumers following the revision in tariffs and introduction of new taxes in December.

“Those who think they have been over-billed due to non-issuance of monthly bills by ECG have other options for remedying their situation. The PURC Act obligates a public utility to give every consumer at the end of every calendar month a bill, and failure to do so is an offence punishable by a fine or imprisonment.

“Consumers must begin to use the court system if PURC is not protecting them as required by law. We believe that these billing challenges have been ongoing for a long time, and consumers are now being taken for granted,” the statement added.

In response to some of the billing discrepancies, ACEP stated that it will begin a campaign to educate consumers about remedies available so that the Regulator/ECG does not abuse the contract between the utilities providers and consumers.

Reduction in cost of power

The policy think-tank said it makes economic sense for government to reduce the current high cost of power, adding that the excessive levies and taxes can be scrapped without undermining the utility companies’ work.

“If the intention of government is to raise more revenue to create jobs and develop the country, how about the opportunity cost -- industries that create many of the jobs folding-up under higher end user tariffs and some even moving to Ivory Coast as we are told?

“This will be counterproductive, and government must reverse the policy immediately. The 10% energy levy for National electrification and public lighting is regressive and punishes industrial consumers the more. We therefore propose that government should consider a flat rate to lessen the burden on industry,” the statement concluded.