Executive Secretary of the Public Utilities Regulatory Commission (PURC) has assured that the interest of both the consumer and utilities would be protected in the ongoing stakeholder consultative engagement before the announcement of new tariffs in Ghana next month.
Dr Ishmael Ackah said his outfit will ensure a balance situation and whatever that is passed is fair to both consumers and utility providers.
He stated until 1997 Ghana’s electricity sector was entirely hydro powered before the introduction a number of thermal plants [oil thermal and gas thermal] following the power sector reforms, adding what it means is that, electricity generation became more expensive, more sophisticated that requires different technologies and skills.
“On water because of galamsey and a number of challenges, we started using more chemicals so we can refine the water for consumption. Again, what it means is that water production and supply became more expensive; at the same time government as the owner and asset owner started reducing how much it invest in the utilities to produce and sell water and produce and sell power. The implication is that, we have to pay for the power we used, we have to pay for the water we use, so water and power are not free” Dr Ackah explained.
The PURC Executive Secretary indicated consumers [apply for, they get approval and they pay for the service]
therein they have a contract with utilities, now what it means is that, utilities have treat them [customers] with respect and provide the services for them at the right time, the right amount and at the right place.
Dr Ishmael Ackah made these remarks when he addressed stakeholders in Tamale on Tuesday (June 14, 2022) when the PURC organized this year’s stakeholder engagement on the submitted utility tariff proposals for the 2022-2027 Multi Tariff Review Period.
Dr Ackah said the proposals when presented to the PURC goes through investigation to ensure what is being passed to the consumer is prudent enough, adding you don’t go make some inefficient decisions or losses and because of that, you subject customers to pay unjustifiable tariffs.
Meanwhile, the Northern Electricity Distribution Company (NEDCo) have proposed an increment percentage of 113 percent and the Ghana Water Company Limited are also proposing an increment of 334 percent to the Public Utilities Regulatory Commission.
Both organizations have lamented about the rate of inflation, exchange rate and substantial losses in recent years.
Consumers’ Plea
Meanwhile, consumers in the northern region have urged the government to postpone the newly proposed tariffs by utility providers in the face of the economic hardship in the country. The consumers have said the economic conditions in the country are not favorable and for that matter they cannot afford to pay the proposed tariff increment.
According to a section of the public, the idea of the increment is insensitive considering the rising cost of living in the country.
