Utility tariffs will increase: Due to predicted increases in utility rates, Ghanaians may need to prepare for higher utility costs.
Upon the announcement, the bill increases will go into effect on Thursday, September 1st, the Daily Graphic said.
Since 2017, utility tariffs haven’t been reviewed before.
In response to suggestions it received from the utility firms, the Public Utilities Regulatory Commission (PURC) conducted countrywide consultations.
According to the Daily Graphic, the new tariffs will not be uniform across the board, therefore the rates will vary based on the justifications and supporting documentation provided by the utilities and the verification performed by the commission.
It said that existing state taxes and levies would not be included in the tariffs that will be issued.
Micro, small, and medium-sized businesses (MSMEs), including restaurants and hairdressers, would be exempt from paying “punitive” tariffs, according to the research.
The Electricity Company of Ghana (ECG) requested a rate hike of 148% in May 2022.
According to the power distributor’s application to the PURC, the modification should apply to the years 2019 through 2022.
Additionally, the business suggested a tariff rise of 7.6 percent on average over the following four years to cover Distribution Service Charges (DSC).
The Ghana Water Company Limited (GWCL) further requested a 334 percent pricing rise. In their application, the GWCL claimed that over time, the authorized prices had not been entirely cost-reflective.
The Ghana Grid Company Ltd. (GRIDCo) has recommended 48 percent, while the Volta River Authority (VRA) has also put out a 37 percent proposal.
Other recommendations included a 113 percent rise over the Northern Electricity Distribution Company’s current pricing and a 38 percent hike from Enclave Power, the sole private power distributor (NEDCo).
In the meanwhile, the PURC surveyed the public after receiving the utility companies’ proposals, and 851 respondents from all 16 areas answered the questions.
Continue >>> Utility tariffs will increase
According to the poll, 44% of respondents said that the present power costs were out of proportion to the level of service provided by the electricity companies.
They cited, among other things, the frequent electricity fluctuations and the subpar customer service as justification.
Regarding power rates, 55% of respondents thought they were excessive, while 42% thought they were reasonable.
Once more, half of the respondents said that the present water pricing was unfair in light of the poor service performance, which included frequent water supply outages.
Because of this, just 41% of respondents thought the current water tariffs were reasonable, while 57% said they were too expensive.