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@Michael, I think you have done a great job with this write-up. I, for one, have been educated, as I had not previously appreciated some of the points you have laid out and explained.
I am not sure whether this has been full ...
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@Michael, I think you have done a great job with this write-up. I, for one, have been educated, as I had not previously appreciated some of the points you have laid out and explained.
I am not sure whether this has been fully considered by the Government, PURC, and ECG when setting new tariffs, but they should consider differentiating the level of increases applied to business customers versus domestic customers. In reality, most of the required investment is driven by government policy that rightly supports business and economic expansion, resulting in ever-increasing electricity consumption by businesses.
This investment should therefore be largely funded through unit-cost charges applied to business customers. For example, in very simplistic terms, if PURC were to recommend a 20% increase in electricity tariffs, 90% of that increase could be directed toward business accounts. Business expansion benefits government revenues through increased tax and exchequer income, and businesses ultimately achieve a return on investment through higher profits. The remaining 10% could then be borne by domestic customers.
Domestic tariffs could be further differentiated by introducing higher charges for affluent zones and lower charges for non-affluent areas, with the bulk of any domestic increase applied to affluent customer areas.
I would also be interested in understanding from ECG the total value of electricity produced in a given year (in cedi terms) compared with the total amount actually collected from bills at year-end. Specifically, what is the annual shortfall in gross cedi terms? This information is critical to understanding how PURC’s approved increases compare to actual revenue gaps.
My concern is that domestic customers are receiving a poor deal in terms of electricity pricing, largely due to inefficiencies in bill collection in past years, as well as theft and corruption under previous administrations. Funds that should have covered today’s tariff increases were lost, resulting in the excessive increases we are now facing.
Mr. President, the water is not flowing , Adenta constituency needs water, nana krom needs water
Mr. President, the water is not flowing , Adenta constituency needs water, nana krom needs water
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