Business News of Monday, 5 March 2018
Public Utilities Regulatory Commission (PURC) is likely to recommend about 12.5% reduction in utility tariffs, according to information Joy Business has picked from persons close to the tariff review.
The utility companies have been pushing for more than 50% hike in tariffs.
Joy Business has learnt that all the utility companies recommended a significant increase in utility tariffs, with the Volta River Authority (VRA), which did not have its proposal captured during the public engagement, proposed as much as 128% tariff increase.
The Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo) and the Northern Electricity Development Company (NEDCo) also proposed increases between 31% and 200%.
The sources say the Commission raised questions about some of the proposals put forward by the power companies but failed to approve the figures.
The PURC initially suggested an average of 27% increase in water and electricity tariff, however, after considering several factors the Commission is said to have settled on a 12.5% reduction.
It is, however, not clear for now when the reduction would be announced, but it is certain is that it would be made before the end of the first quarter of this year.
Meanwhile, before the announcement is made, the utility companies will also be pushing the PURC to alter the 12.5% reduction to a figure that favours them.