Electricity tariffs reduced; Residential customers to enjoy 17.5 per cent cut
With effect from March 15, 2018, residential consumers of
electricity will enjoy a 17.5 per cent reduction in electricity tariffs
depending on their level of consumption.
Non-residential customers will also experience a 30 per cent
reduction, while “special load tariff customers (those who use more
power such as industries) will enjoy a 25 per cent cost reduction.
The mines will pay 10 per cent less of their current tariffs.
The approved reductions in electricity tariffs were announced by the
Public Utilities Regulatory Commission (PURC) after extensive
stakeholder consultations, detailed technical analysis of utility tariff
proposals and consideration of inputs and concerns of customers.
Water
The downward review of the tariff, according to the PURC, excluded water.
“The review of water tariffs require further consultations and the commission is unable to announce a decision at this time.
Water tariffs, therefore, remain the same and a decision will be
taken in the coming weeks,” the commission said in a statement signed by
Mrs Mami Dufie Ofori, the Executive Secretary of the PURC and issued in
Accra Monday.
Electricity
According to the statement, the PURC arrived at the decision to
reduce the tariffs after it had received proposals from the utility
service providers in the electricity and water sectors such as the Ghana
Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG),
Northern Electricity Distribution Company (NEDCo), Enclave Power Company
Limited (EPCL) and the Ghana Water Company Limited (GWCL).
In line with Section 17(2) of the Public Utilities Regulatory
Commission Act 1997, (Act 538), the commission said it proceeded to
investigate the cost of production of all sources of supply of
electricity to the distribution utilities when it received the
proposals.
“As prescribed by law, the commission’s decision-making process
includes but is not limited to detailed technical analysis of tariff
proposals and extensive stakeholder consultation, which 0were held to
solicit views and inputs for the determination of the approved tariffs,”
the statement said.
First tariff review On January 14, this year, President Nana Addo
Dankwa Akufo-Addo announced an average of 14 per cent reduction in
electricity tariffs for non-residential users across the country.
“For barbers, it is being reducedby 18 per cent; for hairdressers and
beauticians, 15.7 per cent; and for tailors, 9.8 per cent," the
President stated at the opening of the EighthSalon Academy of the
National Association of Beauticians and Hairdressers in Accra.
While announcing the cuts in tariffs, the President also stressed
that the government had taken a leap from regularising the power
situation in the country and was now moving on to ensure a boost for
private businesses.
Objectives of reduction
The PURC stated that the key objectives for the tariff review were to
ensure efficient and equitable tariffs and also that they were relevant
to the current socioeconomic environment.
It said in arriving at the decision to review electricity tariffs, it
considered consumer interest, investor interest, economic development,
revenue requirement, natural gas prices, renegotiation of power
agreements (PPAs) and prudent and efficient costs of the operations of
the utility companies.
“The commission also took into consideration the impending Private
Sector Participation (PSP) Concession within the Electricity
Distribution Sector,” the statement said.
The PURC indicated that the review process resulted in reductions in
key utility costs and that the reductions, which were based on PURC’s
2015 gazetted electricity tariffs, were only on the energy charges and
ranged from 10 per cent to 30 per cent
Unchanged tariff structure
The PURC said maximum demand and service charges remained the same as that of the 2015 gazetted tariffs.
Gratitude
The PURC expressed its gratitude to all stakeholders for their input
in the tariff approval process and said it would continue to monitor
operations of the utility service providers to ensure value for money
and quality of service delivery.
“The PURC will also continue to strictly implement its Automatic
Adjustment Formula (AFF) in order to address changes in operational
conditions,” the statement added.
Its full decision, it said, would however, be published in the gazette in due course and will be available on its website: www.purc.com.gh.
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