‘We incurred over US$860 million in forex losses in 2021’ – ECG

ECG proposes 148% in tariffs

GWCL proposes 326% hike in tariffs

ECG to adjust its tariffs to keep its operations afloat, Sylvia Noshie

The General Manager for Regulatory Management at Electricity Company of Ghana (ECG), Sylvia Noshie, has noted that her outfit lost a total of US$860 million to forex due to the constant depreciation of the local currency.

Speaking on Citi TV’s Point of View programme on Wednesday, May 11, 2022, she said ECG needs funds to be able to pay Independent Power Producers (IPPs) at the current market exchange rate.

“These IPPS send us invoices which we have to pay in dollars and the PURC dollar rate still remains at 5.3 since the last tariff approval and you can imagine what the exchange rate is today. Last year, ECG incurred 860 million dollars as forex loss so you can imagine if we are getting to pay IPPs at the current market exchange rate,” Sylvia Noshie said.

This, she said, justifies why the ECG needs a 148% increment in tariff for this year.

ECG has sent a proposal to the Public Utilities and Regulatory Commission (PURC) to increase its tariffs by 148 percent for 2022 with 7.6 percent average adjustments between the periods of 2023 to 2026.

The Ghana Water Company Limited (GWCL) on its part proposed a 334 percent increment in tariff.

Sylvia Noshie said if the proposed 148% increment in tariff is approved, ECG will adjust tariffs at very minimal rates for five years.

“If the 148 is approved then what it means is that year-on-year we will not need that much increment,” she stated.

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