‘We have commenced examining ECG and GWC tarrif increment proposals’ – PURC

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The Public Utility Regulatory Commission (PURC) has said it has initiated the process for the examination and approval of the increment of tariffs proposed by the Electricity Company of Ghana (ECG) and the Ghana Water Company of Ghana (GWCL).

It said their step was considered since the two utility service providers’ proposal of its multi-year review tariff period from 2022-to 2027, is in accordance with the PURC Act, 1997 (Act 538).

The ECG and the GWCL in a 55-page document released on Tuesday, May 10, 2022, proposed an increase in tariffs for the year 2022.

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The ECG is proposing that the PURC allow the power distributor to charge 148 per cent more as a tariff for 2022. It also wants 7.6 per cent average adjustments between the periods of 2023 to 2026.

Similarly, the management of the Ghana Water Company on its part proposed a 334 per cent increment in tariff. It argues that while the average tariff per cubic metre in 2019 was 1.27 USD, it was reduced to USD 1.13 as a result of cedi depreciation.

For the GWCL, the current domestic tariff of GHS3.29 per cubic metre to consumers within 0-5 cubic metres is less than what the poor in rural areas pay, which is about GHS10.

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A statement from the PURC signed by its Executive Secretary, Dr Ishmeal Ackah, served noticed that despite their initiative, the Commission is yet to analyse the tariff proposals and has not taken a decision on any of the submissions.

“In line with the Commissions process, the utility companies have been given the platforms to engage stakeholders on their tariff proposals, including the Ministry of Finance, Ministry of Water Resources and Sanitation, Parliamentary Select Committee on Water, Works and Housing and the Development partners,” the statement said.

The Commission also assures the general public of its commitment to engaging other stakeholders in the coming weeks on the tariff determination process, adding, that it would be “transparent, inclusive and participatory.”

Below is the full statement

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