PURC meets utility service providers today on proposed tariff increment

The Public Utility Regulatory Commission (PURC) is expected to hold a crucial meeting with utility service providers today, Wednesday on proposed tariff increment.

The Electricity Company of Ghana had proposed that its tariffs be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.

The proposed sharp increment, according to ECG, is due to the gap between the actual cost recovery tariff and PURC-approved tariffs as well as the cost of completed projects.

The Ghana Water Company, in a similar document, is also proposing an increment in its tariffs to be able to at least recover its operational cost.

Some observers have said the amount consumers pay for electricity is woefully inadequate to sustain the operations of the ECG.

These proposed increments are coming at a time of great controversy over high cost of living and worsening inflation.

But the service providers maintain that the increment is necessary to keep them afloat.

The GWCL argues that while the average tariff per cubic metre in 2019 was 1.27 USD, the same was reduced to USD 1.13 as a result of cedi depreciation.

The GWCL argues that this has affected its ability to carry out repairs and replacements of aged and obsolete equipment and pipelines.

For the GWCL, the current domestic tariff of GHS3.29 per cubic metre to consumers within 0-5 cubic metres is less than what the poor in rural areas pay, which is about GHS10.

To justify its case for the increment, the Ghana Water Company Limited says it is saddled with a monthly loan payment of $7.93 million which is 47.15 percent of its average monthly revenue.

The GWCL says it has no option but to recover the loans through tariffs.

-Citi

ABOUT: Nana Kwesi Coomson

[email protected]

An Entrepreneur, Corporate Social Responsibility, Corporate Communications Executive and Philanthropist. Editor-in-Chief of www.233times.com. A Senior Journalist with Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. His first degree is in Bachelor of Arts - Political Science (major) and History (minor) from the University of Ghana. He holds MSc in Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) from the Robert Gordon University in the United Kingdom. He is a 2018 Mandela Washington Fellow who studied at Clark Atlanta University in USA on the Business and Entrepreneurship track.

View all posts by: Nana Kwesi Coomson  

Leave a Reply

Your email address will not be published. Required fields are marked *

ABOUT 233TIMES

233times is a Ghanaian media house which serves as a major source of exclusive interviews ,music and video downloads, news and more.

233times reports on major events,news covering entertainment, politics, sports, business, technology, etc from within Ghana, Africa and beyond.

We have a platform for the amateur artistes to portray their staggering talents ...more...

CONTACT US

For further enquiries, please contact us via our contact us page link: CONTACT

WE ON SOCIAL MEDIA. FOLLOW US


To advertise with us or make enquiries, please visit 233times.net/advertise or call Selorm (Selorm) | Selorm (Nana Kwesi)