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Tag: Public Utilities Regulatory Commission (PURC)

  • 2.45% increase in electricity tariff to be implemented today

    2.45% increase in electricity tariff to be implemented today

    Effective today, July 1, electricity tariffs will increase by 2.45% across board, as announced by the Public Utilities Regulatory Commission (PURC).

    There will be no increase in water tariffs. The adjustments
    have been carried out in line with the Commission’s Quarterly Tariff Review Mechanism, tracks and incorporates movements in key factors which are beyond the control of the Utility Service
    Providers (USPs), namely the exchange rate between the US$ and the Ghana Cedi, domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.

    According to the Commission, the factors it took into consideration before concluding the hike in tariffs include the exchange rate, inflation rate, price of natural gas, electricity generation mix, outstanding debt of GHC488 million carried over from the previous three quarters.

    The others are reserve capacity for grid stability and reliability, as well as inclusion of 27% of the cost of alternative fuels such as Distillate Fuel Oil (DFO), Heavy Fuel Oil (HFO) and Light Crude Oil (LCO).

    The Commission has expressed gratitude to stakeholders for their support as it continues to implement the Quarterly Tariff Reviews per its Rate Setting Guidelines to address changes in operational conditions of the service providers.

    PURC electricity tariffDownload

    Majority Leader Mahama Ayariga has justified the Public Utilities Regulatory Commission’s (PURC) decision to increase electricity tariffs.

    Speaking on the floor of Parliament on Friday, June 27, the Majority Leader noted that there is a need for the Electricity Company of Ghana (ECG) to be able to settle its growing debt.

    “You all know that the whole of last year and before that, there was an effort to prevent the PURC from adjusting the tariffs. So that whole period, there was no adjustment, and you know very well that bills were accruing; payments have to be made.”

    “ECG is accumulating huge [debt] and it has to be paid, so who is supposed to pay? Is it not the consumer?” he questioned.

    According to him, failure to address ECG’s indebtedness would render the company powerless in supplying power to its consumers.

    “And if you are not adjusting the tariffs to enable ECG to pay, ECG is going to collapse. They are no longer able to buy the input needed to keep the generators on, and we are going to have a power outage; the bills have to be paid.”

    “The bill has to be paid. So if PURC is doing its work, I do not think there is a basis for saying that because we have improved the economy, it doesn’t mean that the debt at ECG will just be whisked away. The bill has to be paid partly by consumers,” he asserted.

    ECG owes over GHC68 billion to companies it engages. Meanwhile, the Minority is working to summon the leadership of PURC in Parliament over the matter.

  • Electricity tariffs go up by 2.45% effective July 1 – PURC

    Electricity tariffs go up by 2.45% effective July 1 – PURC

    The Public Utilities Regulatory Commission (PURC) has announced that, effective July 1, electricity tariffs will increase by 2.45% across the board.

    There will be no increase in water tariffs. The adjustments
    have been carried out in line with the Commission’s Quarterly Tariff Review Mechanism, tracks and incorporates movements in key factors which are beyond the control of the Utility Service
    Providers (USPs), namely the exchange rate between the US$ and the Ghana Cedi, domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.

    According to the Commission, the factors it took into consideration before concluding the hike in tariffs include the exchange rate, inflation rate, price of natural gas, electricity generation mix, outstanding debt of GHC488 million carried over from the previous three quarters.

    The others are reserve capacity for grid stability and reliability, as well as inclusion of 27% of the cost of alternative fuels such as Distillate Fuel Oil (DFO), Heavy Fuel Oil (HFO) and Light Crude Oil (LCO).

    The Commission has expressed gratitude to stakeholders for their support as it continues to implement the Quarterly Tariff Reviews per its Rate Setting Guidelines to address changes in operational conditions of the service providers.

    “The Commission will continue to monitor the operations of the regulated service providers and to hold them accountable to its regulatory standards and benchmarks to ensure value for money and improved quality of service delivery,” the Commission added in its statement.

    PURC electricity tariffDownload

    The Public Utilities Regulatory Commission (PURC) previously announced a 14.75% rise in electricity tariffs for end-users, alongside a 4.02% increase in water tariffs across all consumer groups.

    These changes came after the Commission’s regular tariff review process for the first and second quarters of 2025.

    The PURC attributed the tariff adjustments to several factors, including fluctuations in the exchange rate between the Ghana cedi and the US dollar, inflation, the rising costs of fuel, particularly natural gas, and the current mix of hydro and thermal power generation.

    However, the Executive Secretary of COPEC, Duncan Amoah, disagreed with the hikes, labeling them as unreasonable and unjustified.

    “If you look at the circumstances surrounding the ECG, there are issues of accountability that render even public procurement processes and laws moot and ineffective. We have almost 2,000 containers unaccounted for, running into hundreds of millions of Cedis.”

    “Then, we turn back and claim we don’t have money, hence being unable to sustain operations. Therefore, we are raising tariffs. This doesn’t add up, and PURC needs to backtrack on the decision.”

  • PURC’s year of strategic impact generates results in Bono East Region

    PURC’s year of strategic impact generates results in Bono East Region

    In its first four months, the Bono East Regional Office of the Public Utilities Regulatory Commission (PURC) has recovered GHS 123,927.86 for the Northern Electricity Distribution Company (NEDCo).

    Notably, Bui Sugar Limited at Banda received a credit adjustment of GHS 35,643.10.

    This recovery aligns with the Commission’s 2024 theme, “a year of strategic impact,” and addresses an undercharge issue from several months in 2023 caused by meter under-readings at the factory.

    Following investigations, the regional office resolved the issue during the initial settlement meeting, earning praise from both parties for its timely and professional handling.

    Established on March 1, 2024, in Techiman, the Bono East Regional Office is the Commission’s eleventh office and the first in the newly created administrative regions.

    Its activities, aimed at decentralizing operations and enhancing service quality, include complaint management, public education, and visibility campaigns through street walks, leaflet distribution, and mass media outreach.

  • Revenue requirement for second quarter projected at GHC6.81 billion – PURC

    Revenue requirement for second quarter projected at GHC6.81 billion – PURC

    The Public Utilities Regulatory Commission (PURC) has estimated that the revenue needed for the second quarter will be GH₵6.81 billion.

    This projection signifies a GH₵1.14 billion increase compared to the revenue required in the first quarter, which was GHS5.67 billion.

    In response to this, the PURC has announced a tariff increase for Electricity and Water, effective from July 1 to September 30, 2024.

    Specifically, there will be a 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh) and a 5.84% increase for all other residential consumers.

    Dr. Ishmael Ackah, the Executive Secretary of the PURC, stated in a signed statement dated May 31 that the Commission aims to recover GHS5.90 billion out of the GHS6.81 billion required for the second quarter.

    “Revenue Requirement for the Electricity Supply Industry (ESI) Total revenue requirement for the first quarter of 2024, amounted to GH₵5.67 billion. In the second quarter, the revenue requirement is projected to be GH₵6.81 billion. This will result in an increase of GH₵1.14B over the first quarter revenue requirement. The Commission, however, decided to recover GH₵5.90 billion of the GH₵6.81 billion required for the second quarter.

    “This decision was taken by the Commission taking into consideration the revenue collection performance of the sector since continuous increases in tariffs have not yielded the corresponding increase in revenue collection by the utilities to cover sector expenditure. In addition, the Commission considered the negative effect of passing on the entire revenue required in one tranche on customers. Thus, the difference of GH₵906.21 million, will be recovered in subsequent quarters.”

    The decision to recover only a portion of the required revenue was made considering the sector’s revenue collection performance, as continuous tariff increases haven’t resulted in proportional revenue collection by the utilities.

    Moreover, passing on the entire revenue requirement in one go would adversely impact customers. The remaining GH₵906.21 million will be recovered in subsequent quarters.

    Additionally, PURC mentioned that the revenue requirement for the second quarter of 2024 for the Urban Water Supply Industry (UWSI) is GH₵670.18 million, with an additional GH₵34.33 million needing recovery.

    “Revenue Requirement for the Urban Water Supply Industry (UWSI). Total revenue requirement for the water sector for the first quarter of 2024, amounted to GH₵635.86 million. Revenue requirement for the second quarter of 2024 amounted to GHS670.18 million. An additional GH₵34.33 million needs to be recovered in the second quarter of 2024. The water tariff has been adjusted upwards by 5.16%,” PURC said.

    This adjustment includes a 5.16% increase in water tariffs.

  • PURC explains rationale for electricity tariff adjustment

    PURC explains rationale for electricity tariff adjustment

    The Public Utilities Regulatory Commission (PURC) has justified its decision to adjust tariffs in the second quarter of 2023.

    According to the commission, the move is needed to sustain the operations of the various companies in the production and distribution chain of electricity.

    “The second quarter tariff decision of 18.36% for electricity helps to fully recover 100% of the inflationary effect, 100% of the gas price effect and 50% of the exchange rate effect” the commission said in a statement.

    The PURC adjusted tariff for the second Quarter Tariff Decision of the Commission, which is expected to take effect from June 1, 2023 .

    Explanation of the June 1st, 2023 Quarterly Tariff Adjustment

    With the recently announced quarterly tariff decision, the electricity utilities are to recoup an amount of GHS1.3149 billion over the next quarter. This is to help purchase fuel to generate power, transmit, distribute and continuously serve consumers. To recover the full amount, electricity tariffs should have been increased by 27.51%. However, given the approved tariff of 18.36%, an amount of GHS877.70 million will be recovered, leaving a balance of GHS437.22 million to be recovered. On the other hand, the amount to be recovered through the water tariff is GHS 650,267,161 million.

    This brings us to the reasons for the recoveries. In other words, what and why are we recovering?

    1. The first is the price of natural gas.

    In the first quarter tariff decision, Jubilee Oil Field contributed 32.7% of gas, Sankofa contributed approximately 51.8%, while Nigeria Gas (N-Gas) contributed 15.1%. Gas from the Jubilee Field was priced at USD 0.5/mmbtu, Sankofa was at USD 6.6272/mmbtu, while N-Gas was priced at USD 8.1510/mmbtu in the weighted average cost of gas (WACOG).

    For the second quarter tariff decision, the contribution of Jubilee Field reduced marginally to 32.2%, whiles Sankofa increased to 53.9%. This reflects changes in the quantity of Natural Gas received from both fields.

    The price of N-Gas on the other hand, increased from USD 8.1510/mmbtu to USD 8.6641/mmbtu, reflecting an upward change in price.

    The overall implication is that the weighted average cost of gas which was USD 6.0952/mmbtu in the first quarter now increased to USD 6.5165/mmbtu in the second quarter. representing an increase of 6.9%.

    Since gas prices are a pass-through cost, it is imperative that we should pay the gas price differential to enable the power producers to generate enough power for consumption. Thus, the percentage increase of 6.9% had to be passed through the tariff.

    • The second variable is the Exchange Rate.

    The projected exchange rate used for the first quarter tariff decision (that is February to April) was GHS 8.6816 to the USDollar. Meanwhile, the actual exchange rate for that same period was GHS 10.9507 to the US Dollar. This led to an exchange rate under-recovery of GHS 2.2690.

    It is important to note that all Power Purchase Agreements (PPAs) are denominated in US Dollars. This means ECG buys power in US Dollars, but sells in Ghana Cedis. The implication is that any under-recoveries with the exchange rate threatens the utility’s ability to procure and sell power. This also threatens the ability of the power generators to procure fuel for generation. Thus, the exchange rate has to be recovered.

    Additionally, the Commission only passed on 75% of the exchange rate under-recovery, which was experienced between September 2022 and January 2023 in the first quarter tariff decision. The remaining 25% which is equivalent to GHS 0.6202 had to be recovered. This means that for the second quarter tariff decision, that 25% equivalent to GHS 0.6202 from September 2022 to January 2023 period plus the previous quarter under-recovery of GHS 2.2690 has to be recovered.

    The Commission however, considered the present economic circumstances of Ghanaians and Industry, and decided to recover the GHS 0.6202 under-recovery from September 2022 to January 2023 period, plus 50% of the GHS 2.2690, which is GHS1.1345 under-recovery of the previous quarter, which comes up to GHS 1.7547 (1.1345+0.6202) to be recovered.

    Finally, the projected exchange rate for the next quarter (June to August) is GHS 10.9571 to the US Dollar. If the under-recovery of GHS 1.7547 of the previous quarter is added to the projected exchange rate of GHS 10.9571, the applicable exchange rate amounts to GHS 12.7118 to the US Dollar. Since only 50% of the exchange rate effect is being recovered, it means, an equivalent of GHS 437 million has been effectively passed on to the next quarter.

    • The third variable for consideration is the Hydro-Thermal mix.

    The hydro-thermal mix used for the second quarter is 29.01% for hydro, and 70.99% for thermal; as against 26.11% for hydro and 73.89% for thermal used for the first quarter tariff decision. The increased hydro allocation of 29.01% helped to reduce the potential tariff by about 2.5%. This means that without the increased hydro allocation, the tariff would have gone up by an additional 2.5%.

    • The final variable is Inflation.

    The projected inflation figure for the year, was 42.63%. If this figure is divided into four quarters, that amounts to an inflation rate of 10.66% per quarter.

    The average actual inflation for the first quarter was 50.47%. Again, if this is divided by four, we get an inflation figure of 12.62%. This means that the inflation effect for the second quarter will be 12.62% – 10.66% which is 1.96. This figure is that which was considered in the second quarter tariff decision.

  • Adopt a progressive approach for debt recovery – Govt to PURC

    Adopt a progressive approach for debt recovery – Govt to PURC

    Government has requested that the PURC postpone at least 35% of the upcoming energy pricing adjustment due to the current economic hardships that Ghanaians are experiencing.

    Ahead of the PURC’s expected quarterly adjustment of electricity tariffs, Government Officials are reported to be impressing on the regulator to be measured in its efforts to clear the outstanding debts owed to Power Producers.


    Forex-related debts owed to power producers are reported to have increased by some 1.2 billion cedis as a result of the non-application of the proposed 44% increase in tariffs in the last adjustment window.

    It will be recalled that though the utility providers requested a 44% increase in order to clear outstanding debts, the PURC allowed only a 29% increase.

    The outstanding 15% is said to have accumulated an extra debt of some 1.2 billion cedis since then. Major Independent Power producers are reported to be threatening to switch off their plants if Government does not pay up the arrears.


    Our sources within the Government say while the Government is keen to avoid blackouts emanating from shutdowns, it is also wary of allowing the PURC to fully impose the needed 27.9% increase in the upcoming window to clear the extra debts.

    Reports say the Government late Tuesday Night urged the PURC to defer part of the expected increase until such a time when economic conditions improve.

    Though the cost of living is gradually reducing after recent hikes, Government sources say conditions should be allowed to improve some more before the full debts are cleared.

    The deferment is expected to enable the Utility providers clear parts of their debts while cushioning Ghanaians for the period.

  • GWCL commences nationwide revenue mobilisation exercise to collect GHS 800m arrears

    The Ghana Water Company Limited (GWCL) has started a nationwide revenue mobilisation exercise to collect all arrears owed by customers.

    The company is out to collect about ¢800 million in debts as of January this year, up from ¢684 million in debts that stood on the company’s books as of January 2022.

    This was when in September 2022, the Public Utilities Regulatory Commission (PURC) increased the average end-user tariff for water by 21.55 per cent, increasing the debt situation to ¢800 million.

    Out of the amount, private companies and individuals account for 90 per cent, while government institutions account for 10 per cent.

    According to the GWCL, whereas the government institutions had been making efforts to settle their debt, consumers in the private sector had been quoting unfavourable business conditions for the accumulation of their debts. 

    Teshie/Nungua

    In view of that, the Managing Director of GWCL, Dr Clifford Braimah, yesterday joined a revenue mobilisation task force team from its Accra East District to collect or disconnect private industries that owed the company.

    The team visited the D.U. Fresh Company, Kata Company Limited, Printex Limited, Interplast Limited and Waka Building Limited.

    Interplast Limited was in good standing, but Waka Building Limited, Printex Limited and Kata Company Limited proceeded to settle part of their arrears.

    However, D.U. Fresh Company, which owed ¢163,000, was disconnected for failing to settle its arrears.

    Dr Braimah noted that the affected customers would be made to settle arrears in full and pay reconnection fees before they would be reconnected.

    Enforcement exercise

    The GWCL MD said the enforcement was successful considering how a majority of the industries were willing to settle their arrears.

    He mentioned that the GWCL would not tolerate customers who refused to settle their arrears with the excuse that they did not have water flowing through their taps.

    “We are not a prepaid company; we are a postpaid company.

    This means that we collect bills on water consumed,” he said, explaining that what had been consumed involved the usage of chemicals and electricity by the GWLC.

    Dr Braimah, however, urged the company’s customers to utilise its online platforms such as the GWCL App or pay via mobile money for convenience.

    He expressed the hope that the GWCL would mobilise more than 50 per cent of money owed it nationwide by the end of April.

    Illegal activities

    At Tema, the Deputy Managing Director of GWCL in charge of Operations, Peter De-veer, said arrears as of April 3, 2023, was ¢140 million.

    He noted that it had become expensive to produce water because of activities such as illegal mining, sand winning and farming either inside or close to the river bodies.

    Mr De-veer said the GWCL used the foreign exchange to procure chemicals to treat the polluted water to meet World Health Organisation standards.

    He noted that such activities increased the turbidity of the rivers where GWCL extracted water for treatment.

  • Lower electricity rates are necessary, – IES

    Lower electricity rates are necessary, – IES

    According to the Institute for Energy Security (IES), if the Public Utilities Regulatory Commission (PURC) had not been overly cautious with the contribution of hydro power, which is the cheapest source in the energy mix, electricity consumers could have been spared the burden of having their tariffs increased by as much as 30%.

    The energy research group argued that the degree of increase in end-user electricity bills, as published this week by the regulator, was influenced by the PURC’s projection that hydro will make up 26.11 percent of the power generation mix.

    In its projection, which is contrary to the PURC’s, water elevations for Bui and Akosombo generating stations (GS) have improved and are capable of producing close to 38 percent of power in 2023. This, the IES, believes should have considerably lowered the rate consumers have been asked to pay, effective February.

    “Although the IES has anticipated that the average electricity end-user tariff (GH₵/kWh) covering residential, non-residential and special load tariff electricity consumers will see an increase within the year, the expected increase in tariff was anticipated to be marginal should more of hydro-electric power be produced from the generation mix,” IES said in a statement to the B&FT.

    Should the PURC decide to maintain the 26.11 percent hydro-thermal and 73.89 percent thermal electricity generation mix for 2023 as the basis for the high tariff increment, IES said that position would amount to promoting inefficiency and deliberately burdening Ghanaians with high electricity cost.

    While agreeing to the other variables – cedi depreciation, inflation rates and the Weighted Average Cost of Gas (WACoG) – as factors which informed the end-user tariff increment of 29.96 percent for electricity to all consumer groups, it however disagreed with the generation mix factor that has been pegged at 26.11 percent for hydro and 73.89 percent for thermal.

    “The IES is concerned in particular about the assumption used in establishing the new electricity tariffs beginning February 1, 2023. On the four key variables, the IES believe the rates for cedi/dollar exchange rate and inflation rates reflect market conditions.

    “The IES however considers the assumption used by the PURC for the electricity generation mix of 26.11 percent hydro and 73.89 percent thermal as baseless. That assumption amounts to giving priority to thermal power generation over hydro, given that water elevations for Bui and Akosombo generating stations (GS) have improved and are capable of producing close to 38 percent of power in 2023, in IES’ estimation,” a portion of the statement read.

    Explaining why it believes PURC has been very modest in its estimation of hydro power generation for the period, it said data from Akosombo and Bui indicate elevations at the beginning of 2023 compared to previous years are in a better positions to produce more electricity than the thermals.

    For instance, it said with a year-start Akosombo water level elevation of 83.10 metres (272.66 feet), it is estimated that total energy production from Akosombo GS could fall between 7,500 and 8,000 gigawatt hours (GWh) for 2023, with the Kpong GS producing roughly 990 GWh of electric energy over the period.

    The statement added: “Bui’s water elevation is expected to help produce more megawatts to meet increasing electricity demand particularly at peak hours, and extended to support voltage on the grid and help reduce transmission losses if dispatched conservatively throughout the year.

    “The Institute agrees with the expectation that the bulk of capacity generation for 2023 will come from thermal sources if natural gas supply is sustained and planned plant maintenance schedules are strictly adhered to. However, with improved water-head levels, hydro-power generation is estimated to produce close to 38 percent of 2023 capacity, should hydro-electric have dispatch priority over thermal in the generation mix.”

    Also, Bui GS’ year-start elevation of 178.99 metres above sea level (masl) is enough to possibly produce an estimated 1,056 GWh of electricity in 2023, IES said.

    “IES, therefore, calls on the PURC to reconsider the energy mix assumption used in the tariff adjustment (to reflect improved water-head levels), as that has an impact on the Weighted Average Cost of Gas – which has been reviewed to US$6.0952/MMBtu from US$5.9060MMBtu.

    This, the IES believes, will bring down the 29.96 percent tariff increase for all electricity consumer groups, thus introducing some relief to the already burdened citizens in the face of the current economic crisis.

  • Urge PURC to reconsider the rise in the cost of power – IES advises

    Urge PURC to reconsider the rise in the cost of power – IES advises

    In order to put pressure on the Public Utilities Regulatory Commission (PURC) to change the proposed increase in energy tariffs, the Institute for Energy Security (IES) has asked the general public and interest organizations to take action.

    The cost of power will increase by 29.96% as of February 1, 2023.

    However, in an interview with Starr News, Nana Amoasi, Executive Director of IES, adamantly asserts that the increment might have been lower if PURC’s predictions for the composition of the energy generation mix had been accurate.

    We can force PURC to reevaluate its assumption between now and then in order to correct them.
    Consumers won’t be required to pay the predetermined 29% or 30% if they make the correction.

    He added: “We need to get the PURC to understand that every Ghanaian is watching the space and it’s very important that they do the right things. Most of the time they get the assumption wrong. In 2021, it was projected that the Bui Power Plant will generate just about 501 gigawatts per hour. It turned out that it was able to generate 991 gigawatts hour of power which was about 40% improvement over the anticipated rate the PURC and the Energy Commission said. So they should go back to the drawing board.”

  • PURC’s projections regarding the generation of the energy mix for the 2023 tariff review are “baseless”

    PURC’s projections regarding the generation of the energy mix for the 2023 tariff review are “baseless”

    The Public Utilities Regulatory Commission (PURC) will begin implementing new electricity rates on February 1, 2023, but the Institute of Energy Security (IES) has raised concerns about the underlying assumptions.

    The IES claims that, notwithstanding its belief that the rates for the Cedi/Dollar exchange rate and inflation rates represent market conditions, it finds the PURC’s premise that the energy generating mix should be comprised of 26.11% hydro-thermal and 73.89% thermal to be unfounded.

    The IES in a statement said the assumption amounts to given priority to thermal power generation over hydro, given that water elevations for Bui and Akosombo generating stations (GS) have improved waterhead levels, and capable of producing over 35% of power in 2023, in its estimation.

    It said data from Akosombo and Bui indicate elevations at the beginning of 2023 compared to previous are in a better position to produce more electricity than the thermals.

    “Bui’s water elevation is expected to help produce more megawatts to support voltage on the grid, and help reduce transmission losses if dispatched conservatively throughout the year,” the statement noted.

    The Institute agreed with the expectation that bulk of the capacity generation for 2023 would come from thermal sources if natural gas supply is sustained, and planned plant maintenance schedules is strictly adhered to. However, with improved water-head levels, it said hydropower generation is estimated to produce close to 38% of 2023 capacity, should hydro-electric have dispatch priority over thermal in the generation mix.

    The statement explained that “With a year-start Akosombo water level elevation of 83.10 metre (272.66 feet), it is estimated that total energy production from Akosombo GS could fall between 7,500 gigawatt-hour and 8,000 gigawatt-hour (GWh) for 2023, with the Kpong GS producing roughly 990 GWh of electric energy over the period.

    “Also, Bui GS’ year-start elevation of 178.99 metres above sea level (masl) is enough to possibly produce an estimated 1,056 GWh of electricity in 2023.”

    Although the IES has anticipated that the average electricity end-user tariff (GH₵/kWh) covering residential, non-residential and special load tariff electricity consumers would see an increase within the year, it said the expected increase in tariff was anticipated to be marginal should more of hydro-electric power be produce from the generation mix.

    The IES is, therefore, calling on the PURC to reconsider the energy mix assumption used in the tariff adjustment (to reflect improved water-head levels) as that has an impact on the Weighted Average Cost of Gas, which has been reviewed to $6.0952/MMBtu from $5.9060MMBtu.

    This, the IES believe will bring some relief to already burdened citizens, and in the face of the current economic crisis.

  • Pay compensation to affected customers – PURC to ECG

    The Public Utilities Regulatory Commission (PURC) has ordered the Electricity Company of Ghana (ECG) to pay compensation to its customers affected by its prepayment system across the country from September to early October, this year.

    This follows the failure in ECG Prepayment vending System at Volta, Takoradi, Tema, Cape Coast, Kasoa, Winneba, Swedru, Koforidua, Nkawkaw andTafo among other locations.

    To demonstrate good customer service, the commission has asked ECG to pay lifeline customers GH¢15, residential customers with 10 penalty units equivalent GH¢120; non-residential customers with 20penalty units equivalent GH¢240; commercial customers with 40penalty units equivalent GH¢480 and industrial customers with 100 penalty units equivalent GH¢1,200.

    Dr Ishmael Ackah in a statement issued and signed and copied to Ghanaian Times in Accra on Tuesday said the ECG would pay the compensation in the form of a one-time electricity credit from last Saturday to Friday October 7, 2022 with the compensation clearly indicated on customer receipts.

    “ECG shall issue widespread notifications to inform customers of the compensation due to them and shall maintain accurate records of measures taken to comply with this order including the number of temporary staff engaged (if any), for purposes of regulatory monitoring,” he stated.

    “This order is without prejudice to any additional directives the Commission may issue with respect to the incident,” he added.

    Dr Ackah noted that the order was issued under sections 11 and 12 (1) and (2) of the Public Utilities Regulatory Commission Act, 1997 (Act 538); and regulations 41 and 45 of the Public Utilities Regulatory Commission (Consumer Service) Regulations, 2020 (L12413).

    He said that the law imposed a duty on public utilities to provide safe, adequate, efficient, reasonable and non-discriminatory service.

    “The law also mandates the Commission to impose compensation orders among other penalties on public utilities for failure to comply with their legal obligations,” he said.

    Dr Ackah said it was for that reason the commission in consideration of the inconvenience occasioned by the failures with the ECG prepayment meter system determined that ECG would pay compensation to all its affected customers.

    The Executive Secretary of the PURC said that the ECG would additionally adopt immediate measures to increase staff output and responsiveness to customers.

    Dr Ackah said ECG would extend the working hours at all affected locations to 8pm,

    engage temporary staff to ensure that affected customers were speedily attended to and were credited with the approved compensation by October 7, 2022.

    “Final resolution of the vending failure as soon as possible with minimum further inconvenience to consumers,” he added.

    Source: Ghanaian Times

  • Utility tariffs to increase from September 1

    Reports have it that Ghanaians would be hit with an upward adjustment of utility tariffs starting September 1, 2022.

    Should information from Daily Graphic be anything to go by, this will be the first review of utility tariffs since 2017.

    Daily Graphic reported that the new tariffs will not be across the board, which means the rates will depend on the reasons and proofs adduced by the utilities and the verification the commission has done.

    This comes after the Public Utilities Regulatory Commission (PURC) had carried out nationwide consultations on proposals it received from the utility companies.

    It is said that the tariffs to be announced would exclude taxes and levies already imposed by the state.

    The report also revealed that micro, small and medium enterprises (MSMEs), such as food joints and salons, would be protected from paying “punitive” tariffs.

    In May 2022, the Electricity Company of Ghana (ECG) demanded a 148% increase in tariff.

    The proposal from the power distributor, submitted to the PURC, wanted the adjustment to cover the period 2019 and 2022.

    The company also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).

    On its part, the Ghana Water Company Limited (GWCL) also demanded a 334% increase in tariff. The GWCL in its proposal said over the years, the approved tariffs have not been fully cost-reflective.

    The Volta River Authority (VRA) has also proposed 37%, with the Ghana Grid Company Ltd (GRIDCo) proposing 48%

    Other proposals were 38% from the only private power distributor, Enclave Power, and 113% increase over the existing tariffs of the Northern Electricity Distribution Company (NEDCo).

    Meanwhile, after receiving the proposals from the utility companies, the PURC conducted a survey in which 851 respondents across all 16 regions completed the questionnaire.

    The survey indicated that 44% of respondents thought the current electricity tariffs were not proportionate with quality of service received from the electricity utilities.

    They based their reason on the frequent voltage fluctuation and poor customer service delivery among other reasons.

    On electricity tariffs, 42% of the respondents rated prevailing tariffs as fair, while 55% rated them as high.

    Again, half of the respondents indicated that current water tariffs were not justified, given the poor service delivery in the form of frequent water supply interruptions.

    Consequently, 41% of respondents rated prevailing water tariffs as fair, while 57% rated them as high.