The Public Utilities Regulatory Commission (PURC) says the date for announcing the new utility tariffs has been moved from July 1 to July 15, 2022.
“This was necessitated as a result of the broadening of the tariff consultation process to solicit for more independent views; ensure independent verification of submitted projects and have deeper consultations with the key stakeholders,” a statement dated June 27 explained.
The PURC had set July 1 for the 2022-2027 multi-year major tariff announcement, after receiving and interrogating proposals from power distribution companies.
Aside from the entities, there have been public hearings where members of the general public voiced their concerns over the demand for utility increment by the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL), among others.
“The above has led to the need for more time for further reviews of the tariff proposals submitted by the utility service providers and to incorporate the findings of the regulatory audit and views of all stakeholders across the country,” the statement added.
Proposals from ECG and GWCL
The Electricity Company of Ghana is demanding a 148% increase in tariff.
A proposal from the power distributor, submitted to the Public Utilities Regulatory Commission (PURC), wants the adjustment to cover the period 2019 and 2022.
It also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).
On its part, the Ghana Water Company Limited is demanding a 334% increase in tariff.
The GWCL in its proposal said over the years, the approved tariffs have not been fully cost-reflective.
These proposals have generated widespread conversation, with many Ghanaians expressing their disapproval of same.
Following the concerns raised, GWCL stated that should the general public refuse to support the company’s drive to get customers to pay realistic tariffs it may have to halt operations in the future.
According to the Communications Manager, Stanley Martey, the company can no longer continue to struggle to stay afloat using the meagre revenue it generates, hence the need for higher tariffs.
“The Commission wishes to assure all stakeholders of its commitment to ensuring a transparent, fair and all-inclusive process in determining the multi-year tariff,” the PURC noted.
Meanwhile, the Commission has denied claims by the Minority in Parliament that government is pressuring PURC to approve tariff proposals of the Electricity Company of Ghana.
The Director of Research and Corporate Affairs, Dr Eric Obutey, says the outfit is not under any pressure to approve tariffs.