{"id":2015,"date":"2019-01-15T13:15:55","date_gmt":"2019-01-15T13:15:55","guid":{"rendered":"https:\/\/www.aptnewsghana.com\/?p=2015"},"modified":"2019-01-15T13:16:02","modified_gmt":"2019-01-15T13:16:02","slug":"purc-to-announce-new-tariffs-on-feb-1","status":"publish","type":"post","link":"https:\/\/www.aptnewsghana.com\/index.php\/2019\/01\/15\/purc-to-announce-new-tariffs-on-feb-1\/","title":{"rendered":"PURC to announce new tariffs on Feb. 1"},"content":{"rendered":"\n

The Public Utilities Regulatory Commission (PURC) has stated that the new tariffs for the year will take effect from 1 February 2019.<\/p>\n\n\n\n

The Chairman of the Technical Committee of the PURC, Mr Ishmael \nEdjekumhene, made this known at the final public hearing on tariff \nadjustment in Accra yesterday.<\/p>\n\n\n\n

The consultative meeting was to enable the service providers to \npresent their proposals before the stakeholders for consideration.<\/p>\n\n\n\n

\"ecg
ecg meter<\/figcaption><\/figure><\/div>\n\n\n\n

The utility companies who attended the meeting were the Electricity \nCompany of Ghana (ECG), Ghana Grid Company (GRIDCo), Northern \nElectricity Distribution Company (NEDCo), Enclave Power Company Limited,\n a Ghanaian-owned private power distribution company, Ghana Water \nCompany Limited and Power Distribution Services Limited (PDS), which is \ntaking over the ECG.<\/p>\n\n\n\n

Proposals<\/strong><\/p>\n\n\n\n

According to Mr Edjekumhene, the commission would scrutinize the \nproposals submitted by the utility service providers, evaluate them and \ncome up with appropriate new tariffs by 19 February 2019.<\/p>\n\n\n\n

He said while the concerns raised by the public at various \nconsultative meetings across the country would be considered in the \nreview procedure, one key factor the PURC would take into consideration \nbefore approving the new utility tariffs was to ensure a high level of \nefficiency on the part of service providers.<\/p>\n\n\n\n

Touching on the concerns for cheaper electricity in the country, Mr \nEdjekumhene acknowledged that electricity needed to be cheaper, but that\n could not be done overnight due to already existing binding power \npurchase agreements signed by the various governments.<\/p>\n\n\n\n

Additionally, he said the thermal plants which the country relied \nupon for power generation, coupled with the cost of gas to produce \npower, had made thermal plants very expensive, increasing the cost of \nelectricity in the country.<\/p>\n\n\n\n

He noted that the utility service providers were trying hard to \ndeliver on their mandates but more needed to be done to enhance their \ndelivery and cut down their cost of operations.<\/p>\n\n\n\n

With the takeover of the ECG by PDS, he said, electricity losses were\n expected to reduce by one per cent annually, leading to efficiency in \nthe power distribution sector.<\/p>\n\n\n\n

ECG and GRIDCo<\/strong><\/p>\n\n\n\n

Presenting the proposed tariff adjustments, Mr Ebenezar Baiden, an \nEnergy Economist at the ECG, said the company had over the past years \ninvested in various expansion and new projects to provide a reliable \npower supply for its customers and added that the company\u2019s current \nasset was GHS13 billion.<\/p>\n\n\n\n

He said the demand for the upward adjustment was to enable the ECG to\n undertake more expansion works to ensure reliability, efficiency and \naccessibility of power across and beyond the country.<\/p>\n\n\n\n

The GRIDCo, in their presentation, said they were asking for almost a 100 per cent increase in new tariffs.<\/p>\n\n\n\n

The Manager for Market Operations, Mr Kofi Owiredu, who made the \npresentation on behalf of GRIDCo, said the current tariff was not \nreflective of the huge cost of its operations and other costs and, \ntherefore, called for upward adjustments.<\/p>\n\n\n\n

He said the company was proposing GHS4.897 per kilowatts hour as against the current tariff of GHS2.5107 per kilowatts hour.<\/p>\n\n\n\n

Mr Owiredu said the company incurred a financial loss of GHS76 \nmillion in its operations, a challenge that resulted in delayed debt \nservice and breach of financial covenant, deferment of some projects and\n maintenance works, as well as a delay in the payment of compensations.<\/p>\n\n\n\n

NEDCo<\/strong><\/p>\n\n\n\n

The Northern Electricity Distribution Company (NEDCo) is proposing a \n40 per cent increase over the 2015 adjustment of 0.3075 pesewas.<\/p>\n\n\n\n

The Manager in charge of Billing and Revenue of NEDCo, Mr Thompson \nAgalab, said the company was also making losses as it recorded GHS230 \nmillion in 2018 due to inadequate revenue from the 2015 approved \ntariffs.<\/p>\n\n\n\n

He said a large chunk of their customers were the ministries, \ndepartments and agencies (MDAs) who since 2013 had not paid the \nGHS814,041,525 they owed the company.<\/p>\n\n\n\n

He, therefore, expressed the hope that government would assist the \ncompany to retrieve the amount to solve the numerous problems facing the\n company.<\/p>\n\n\n\n

The Enclave Power Company Limited also proposed 26 pesewas per kilowatts hour.<\/p>\n\n\n\n

GWCL<\/strong><\/p>\n\n\n\n

The Ghana Water Company Limited also proposed 0.022 pesewas increases in water tariff.<\/p>\n\n\n\n

However, the director of communication of the company suggested that \nthe tariff would be reduced to 0.0014Gp if the government would support \nthe company to pay off its outstanding loans.<\/p>\n\n\n\n

TUC<\/strong><\/p>\n\n\n\n

The Trades Union Congress has, however, called for 15 per cent \nreduction in electricity instead of the current upward adjustment the \nutility service providers were demanding.<\/p>\n\n\n\n

The Director of Research and Policy, Mr Kwabena Otoo, in his remarks,\n said if the government had made some bad policies in the sector, the \nordinary Ghanaian should not be made to bear the cost through the high \ntariffs.<\/p>\n\n\n\n

Nonetheless, he urged the service providers to take into \nconsideration the income of the citizens before making some of those \nproposals, saying the average salary was GHS800.<\/p>\n\n\n\n

Source: graphic.com.gh<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Public Utilities Regulatory Commission (PURC) has stated that the new tariffs for the year will take effect from 1 February 2019. The Chairman of […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":2016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[421,411],"class_list":["post-2015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-ecg","tag-purc"],"yoast_head":"\nPURC to announce new tariffs on Feb. 1 - Apt News Ghana<\/title>\n<meta name=\"description\" content=\"Chairman of the Technical Committee of the PURC, Mr Ishmael Edjekumhene, made this known at the final public hearing on tariff adjustment in Accra.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aptnewsghana.com\/index.php\/2019\/01\/15\/purc-to-announce-new-tariffs-on-feb-1\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PURC to announce new tariffs on Feb. 1 - 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