Utility tariffs to go up marginally

PURC Prepaid File photo

Wed, 13 Feb 2019 Source: Michael Creg Afful

Consumers of utilities should expect to pay a marginal increase in tariffs beginning March this year.

The Public Utilities Regulatory Commission (PURC) is expected to make the official announcement within this week after successfully holding series of meetings with stakeholders.

A source at the Commission revealed this to Oman FM, however, it could not confirm what percentage increment consumers should expect.

"The way the parameters are going, there will be a slight increment. But I wouldn't be able to tell you," the source said.

Consumers of utilities especially electricity, have enjoyed between 10% and 30% reduction in tariffs since March 2017.

Despite the reduction in tariffs more than a year ago, some stakeholders including Association of Ghana Industries (AGI) and Trades Union Congress, believe the tariffs regime in Ghana especially electricity, is too high as compared to other countries in the subregion.

They want utility tariffs to be reduced further in order to bring some relief to them.

However, utility service providers have also made a strong case for increase in tariffs.

They argued that the reduction in tariffs has actually affected them in so many ways as funds needed for infrastructure development had not been forthcoming.

Ghana Grid Company (GRIDCo) is demanding an adjustment from the current 2.5107 GP/kWh to 4.897 Gp/ kWh (exclusive of transmission losses), which is considered cost-reflective to cover Operating and Maintenance Costs, Depreciation, Finance Costs and a reasonable Return on Net Fixed Assets for 2019 while NEDCO proposed an increment from the existing 0.307555 per kWh to 0.43 in 2019.

The Ghana Water Company Limited is demanding an increment from 0.0062 Gp per litre to 0.022 Gp per litre to help recover the loan payment and address its current challenges.

Source: Michael Creg Afful
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