GRIDCo proposes 95% tariff increase

The Public Utilities Regulatory Commission (PURC) is under pressure to increase tariffs for power generators in the country to ensure efficiency.

The Ghana Grid Company Limited is proposing about 95% of tariff increment from the current 2.5107 Gp/kWh to 4.897 GP/kWh

At a ‘stakeholder’s consultative meeting of major utility providers on tariff review’ organized by the utility regulator PURC, in Accra today January 14, 2019, the Marketing manager in charge of operations at GRIDCo, Kofi Owriedu Ntow said the increment has become necessary due to the increase in demand and high cost of doing business.

He noted that an amount of GHC76million was lost in September 2018 and this led to the company not been able to perform to expectations. GRIDCo have not been able to make new recruitment and also acquire new tools and equipment to enhance their operations.

He added that the loss has led to delays in debt services and breach of financial contracts, deferment of projects and some maintenance works as well as delays and non-payment of (RoW) compensations.

Mr. Kofi Ntow in justifying their proposal for tariff increment further said there has also been an increment in operations and maintenance costs.

GRIDCO however has invested over$600million no projects. Out of this, an amount of $300.76 was invested in projects which is completed and an amount of $388.65 in ongoing projects.

By: Theresa Adezewa Ayittey