We will not shoulder the burden of 'outrageous' utility tariffs - PURC
The Public Utility Regulatory Commission (PURC) is reassuring customers that utility pricing increases would be delayed.
Ishmael Edjekumhene, Chairman of the PURC Technical Committee, stated that the Commission will not accept any tariffs that are unjustified.
"PURC is evaluating the utility suppliers' offers, following which we will make a judgment."
"What I am positive of is that customers will not be forced to accept the exorbitant expense."
Meanwhile, before proposing new tariffs, the Commission is engaging with all stakeholders around the nation. PURC has stated that when deciding new utility prices, it will take into account the interests of all stakeholders.
"PURC will consider the public's and other stakeholders' concerns. We'll take into account the interests of the general public and investors, as well as the utility company's financial viability.
In a media interview, PURC's Head of Public Relations and External Affairs, Ali Simon Jarana, said, "We will also look at our regulatory standard, including the permissible losses, and all of these are put together, so it isn't simply an intellectual exercise."
Utility companies' demands
The Ghana Electricity Company and the Ghana Water Company Limited are requesting a price increase of nearly 100% to cover "operational costs."
The Ghana Electricity Company requested a 148 percent rise in prices for 2022, with 7.6 percent average revisions between 2023 and 2026.
According to ECG, the planned steep increase is due to a disparity between actual cost recovery rates and PURC-approved prices, as well as the cost of completed projects.
The GWCL also claimed that the average rate per cubic metre in 2019 was 1.27 USD, but that due to the cedi devaluation, it was cut to USD 1.13.
This, according to the GWCL, has hampered its capacity to repair and replace old and obsolete equipment and pipes.
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