There was a broad stakeholder consultation before increment in electricity tariffs - PURC

The Public Utility Regulatory Commission (PURC) has justified reasons why it approved an increment in electricity tariffs by 11.17%.

Speaking in an interview with Nyankonton Mu Nsem on Rainbow Radio 87.5Fm, Public Relations Officer (PRO) for the PURC, Mr. Bawa Munkaila said, the increment was as a result of the usual factors that the commission has been using in reviewing tariffs.

These factors he said include macroeconomic factors, market factors, market factors and the commercial factors of the utility companies

‘’When we talk about the macroeconomic factors, we talk about the exchange rates, the rate of inflation; coming to the market factors, we are talking about the cost of generation, transmission, distribution and the loses. So, all these things were taking into consideration before arriving at the 11.17%,’’ he explained.

When asked if the PURC engaged stakeholders especially consumers before arriving at the figure he said, ‘’before coming up with the increment, we had an extensive stakeholder consultation”.

The PURC has approved an 11.17% tariff increase for recovery of total electricity revenue requirement for the regulated electricity market, effective July 1, 2019.

The PURC said it took the decision after it received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sections: Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PPDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC).

The statement said extensive technical and financial analyses of the proposals were undertaken.

Mr. Bawa said the PURC further published the proposals that were received from the various stakeholders.

He hinted the PURC would embark on nationwide tour to engage with consumers before the implementation date.

“In line with the Commission’s regulatory oversight mandate, extensive technical and financial analyses of the proposals were undertaken. The key objective of the tariff review was to sustain the financial viability of utility service providers as well as ensuring delivery of quality service to consumers,” the PURC said in a statement.

According to the Commission, as a major policy shift aimed at enhancing the competitiveness of Ghanaian industries, it has eliminated the Maximum Demand Charge on industrial customers (Special Load Tariff-SLT Customers). It is expected that this policy will result in some 5LT customers experiencing savings in their overall electricity bills.

“This 2019-2020 Major Tariff Review Decision is the outcome of prudent cost review and effective monitoring undertaken by the Commission. Details of the approved electricity tariffs and the rationale for the decision will be published on the Commission’s website,” the statement announced.