The Public Utilities Regulatory Commission (PURC), says until a new Board is constituted for the Commission, any announcement of a tariff adjustment will have to wait.
Various players in the power and water supply value chains have been advocating for an upward review in tariffs to cater for their rising operational costs.
This has resulted in the commencement of a tariff review process.
Speaking to Citi Business News on timelines for the announcement of possible tariff increments, the Head of Public Relations at the PURC, Bawa Munkaila, said the Commission’s Secretariat is currently focused on carrying out a successful review process until a Board is constituted.
“Talking about timelines, until the Board is duly constituted, the Secretariat will not be able to share any dates or times for announcing possible tariff increases. When the Board is constituted, they will now analyse the data that we are gathering and storing for them. Based on that information they will make a final decision on utility prices,” he said.
Minority Leader calls for constitution of Boards for statutory funds
The Minority Leader, Haruna Iddrisu recently demanded the urgent constitution of the Boards for statutory funds in the country.
Months after the inauguration of the second term of the current administration, boards for the GETFund, NHIFund, DACF and the road fund have not been formed.
This he says is hindering the smooth running of these important funds that are critical to national development. He raised this concern on the floor of Parliament on Wednesday, May 26, 2021.
ECG proposes increment in tariff to support operational activities
The Electricity Company of Ghana (ECG) says it needs more funds to support its operational activities.
The Managing Director of the company, Kwame Agyeman-Budu at a public forum on Thursday, April 8, 2021, said while he is aware that the proposal will only materialize after approval from the Public Utilities and Regulatory Commission (PURC), he believes that it is critical for ECG to have access to more funds to enable it operate efficiently.
Currently, lifeline consumers who are classified as poor and low-income earners pay GHS16 for the power consumed and extra GHS2.13 as service charge, making it a total of about GHS18.
“We need money to do it [improve]. If we get the increase we will love it [but] that will be up to the PURC because, no matter what we propose, they will ultimately decide.”
“In terms of distribution, we need support, because we have to do upgrades to make sure the system is sustainable. We don’t wait till something is broken before we fix it. We need additional funds to upgrade our systems at all times,” he added.
On whether the proposal will not lead to an extra burden on the finances of Ghanaians, Agyeman-Budu said the details will be given should PURC give approval.
Meanwhile, a former ranking member of Parliament’s Mines and Energy committee, Mutawakilu Adam has kicked against the proposal, insisting that the ECG has not demonstrated efficiency in its operations to merit an increase in tariffs.