The Electricity Company Limited (ECG) has accepted the tariff increase approved by the Public Utilities Regulatory Commission (PURC) expected to take effect September 1, 2022.
Tariffs for electricity and water are expected to go up by 27.15% and 21.55% respectively.
Speaking in an interview on Joy FM’s Top Story on Monday, the Director of External Affairs, Charles Nii Ayiku stated that the power distribution will continue to provide consumers with quality feed and reliable power despite the new tariff being lower than expected.
“Yes, as expected by all, of course you will not be excited about what has been given by the PURC but we have accepted it.”
Mr. Ayiku added that “where we have any challenges, we will consult with our stakeholders PURC.”
According to him, ECG will also work hard to increase its revenue to reduce losses incurred. He said current activities being done to ensure this is achieved is by auditing the ECG meters.
ECG earlier demanded a 148% increase in tariff. A proposal from the power distributor, submitted to the Public Utilities Regulatory Commission (PURC), wants the adjustment to cover the period 2019 and 2022.
It also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).
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.
Management of the utility providers indicated that they are overburdened with operational costs, therefore, struggling to survive.
They outlined that an increase in the dollar exchange rate, inflation, pollution among others contribute to the high operational cost hence their proposal for tariff increments of 148% for electricity and 344% for water.
The utility service providers made these known at a public hearing organised by the Public Utilities Regulatory Commission (PURC) in the Volta Regional capital of Ho.
The General Manager of the Regulatory Management of ECG, Sylvia Noshie, noted that “ECG is currently a struggling distribution that requires urgent support” therefore the need for a full cost recovery tariff proposal.
“If you consider the impact of the macroeconomic variables, what it means is that our inadequate distribution service charge, has now diminished, it has dwindled…and this has impacted ECG’s operation. Now the prevailing tariffs as it stands now do not satisfy the cost of distribution these days.
In our entire proposal, it is only on the DSC one, which we are saying, has increased by 148,” she said.
However, after a careful consideration by the PURC, it announced the new increase in tariff of 27.15% and 21.55% respectively for electricity and water.