The Public Utilities Regulatory Commission (PURC) has approved an 11.17% tariff increase for electricity from July 1.
PURC explained in a press release on Friday that the increase is for the recovery of total electricity revenue requirement for the regulated electricity market.
“In taking the above decisions, the Commission received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sectors: Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC).
“In line with the Commission's regulatory oversight mandate, extensive technical and financial analyses of the proposals were undertaken. The key objective of the tariff review was to sustain the financial viability of utility service providers as well as ensuring delivery of quality service to consumers,” the PURC said.
According to the Commission, as a major policy shift aimed at enhancing the competitiveness of Ghanaian industries, it has eliminated the Maximum Demand Charge on industrial customers (Special Load Tariff-SLT Customers). It is expected that this policy will result in some 5LT customers experiencing savings in their overall electricity bills.
Related: ACEP cautions PURC over delay to release new power tariffs
“This 2019-2020 Major Tariff Review Decision is the outcome of prudent cost review and effective monitoring undertaken by the Commission. Details of the approved electricity tariffs and the rationale for the decision will be published on the Commission's website,” the statement announced.
The Commission has also received a tariff proposal from the Ghana Water Company Limited (GWCL) but is yet to announce its decision.
In February this year, the PURC announced that the new electricity tariff would take effect from July 1, 2019, following a mandatory major tariff review consultations in January this year.
In a press statement issued on February 27, 2019, the Commission explained that its decision to postpone the announcement of the tariff to July was due to critical emerging issues in the sector which are expected to affect the final tariff setting.
Among others, it cited the emerging issues are related to the planned relocation of the Karpowership Plant resulting in fuel switch savings from Heavy Fuel Oil (HFO) to Natural Gas.
The Commission also cited reductions in the price of natural gas are anticipated due to ongoing negotiations by the government as the reason for the postponement.
These matters are outside the purview of PURC but their outcomes are likely to have a measurable impact on the Commission's decision.
Latest Stories
-
FWSC responds to CLOGSAG strike declaration, urges return to negotiation
12 mins -
Members contribute to ‘transport’ national team – Volleyball Vice President laments financial struggles
20 mins -
New SHS curriculum provides adaptive learning pathways – EduWatch
23 mins -
Pay NABCO trainees – Mahama challenges Bawumia
31 mins -
Police ‘waiting for court date’ on Erastus’ case is a lie – Samson Anyenini
41 mins -
Sports facilities are better managed by institutions – UG Sports Director on maintenance of Legon stadium
1 hour -
Ghanaian businesses must align vision with strategy to mitigate ESG Risks – KPMG
1 hour -
MTN achieves 30% localisation of Scancom PLC
1 hour -
Attorney-General: Some lawyers sacrifice ethics for ‘cheap’ political gains
2 hours -
Bond market: Volume up by 12.45% to GH¢746m
2 hours -
Cedi records year-to-date loss of nearly 29%; one dollar going for GH¢17.10
2 hours -
‘Our priorities are wrong in Ghana’ – UG Sports Director on sports development
2 hours -
The Fourth Estate’s investigative report wins 2nd place at 2024 AIJC
2 hours -
GPL: Our fans spur us on – GoldStars head coach Frimpong Manso on unbeaten run
3 hours -
Plantain chips are breaking hearts in Africa
3 hours