Business News of Wednesday, 6 February 2019
Source: citibusinessnews.com
2019-02-06
Implementation of the new tarirffs is not expected to until the 1st of March.
Citi Business News has gathered that the delay in the announcement of new electricity tariffs by the Public Utilities Regulatory Commission (PURC) on 1st of February, was as a result of the delayed takeover of the Electricity Company of Ghana (ECG) by the Power Distribution Services (PDS) Ghana Limited, as well as ongoing consultations on tariff charges among stakeholders within the power sector.
The PURC after taking tariff proposals from power companies such as the Northern Electricity Distribution Company (NEDCo), the Electricity Company of Ghana (ECG) and the Ghana Grid Company (GRIDCo) at a public hearing on tariff adjustment on January 14, announced that new tariffs for 2019 will take effect from February 1.
Whereas NEDCo called for 40 percent increase in their tariff, GRIDCo, on the other hand, asked for almost 100 percent increase in new tariffs.
But the regulatory is yet to make a public announcement. Some industry watchers have however disclosed to Citi Business News that the new tariffs should be announced before February 15.
The utility companies require about two weeks to effect the new tariffs.
Implementation is not expected to until the 1st of March.
Speaking to Citi Business news on the expectations of the Northern Electricity Distribution Company (NEDCo) ahead of the tariff announcement, the Corporate Communication Manager for NEDCo Maxwell Kotoka, said the company is confident of receiving approval for its proposed 40 percent increase in its tariffs.
“Well we are very confident that we should be getting the 40 percent. We raised very logical and cogent arguments to the body. Having said that we also are humble and sincere with ourselves enough to know that the power rests with PURC and not just us. And so all said and done we are keeping our fingers crosses, waiting with bated breaths for the announcement. Basic economic tells us that you don’t get all your needs, and so as and when it comes we will manage what is brought within the constraints.”
Mr. Kotoka also touched on the possible impact on their operations if they get a lower tariff approval.
“It may not make us function at the optimal level, but well when we get to the bridge we’ll cross. Like our presentation emphasized it will be important that whatever decisions are taken bares in mind the implication not only for now but also for the future. And we trust and believe sincerely that the PURC understands this even better than we do, they are capable, ready and willing to do that which is right and in the best interest of Ghana.”
