PURC hints of upward tariff adjustment in October

nana-yaa-jantuahCommunications Director of the Public Utilities Regulatory Commission (PURC), Nana Yaa Jantuah, has hinted of an increase in utility tariffs.

She however explained that the intended increase will depend on the new generating plants that are expected to come on board. The PURC regulates VRA, Northern Electricity Distribution Company (NEDCo) a subsidiary company of VRA, GRIDCo, ECG; as well as the Ghana Water Company.

It also regulates natural gas pipeline transmission tariff and aggregated gas prices processed by the Ghana National Gas Company.

PURC in adjusting prices, looks at the uncontrollable factors such as price of crude oil, exchange rate, generation mix, chemicals for the water company and investments made by the companies towards generation, transmission and distribution.

“During the major tariff review; we collect proposals from the utilities; we interrogate their cost and revenue requirement; we look at the rate of return on their investment; we look at prudent and reasonable cost that is necessary for the utilities to do their work”.

36 per cent of Ghana Water CompanyP’s cost is electricity while others also have a lot of leakages in the distribution system.

“We have to balance the interest of both the consumer and the utility service provider. So we have benchmark losses for every one of them and once you have a benchmark loss and you go beyond that; it becomes your own cost”.

Nana Yaa Jantuah says there could be an upward adjustment in tariffs at the next review.

“On 1st October once these generating plants come on board, we have to see some form of increase. But it will only be dependent on the fact that these plants would be there. If they are not there, there is no way we are going to pass on any increase” she noted.

The Public Utilities Regulations Commission is charged to build a credible and sustainable utility regulatory regime which would protect the interest of all stakeholders.

Already the Energy Ministry has hinted that Ghanaians would be paying more for the emergency power barges expected from Turkey by September to mitigate the effects of the power crisis.

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