Ghana’s Utility tariffs to go up marginally

Consumers of utilities should expect to pay a marginal increase
in tariffs beginning March this year.
The Public Utilities Regulatory Commission (PURC) is expected
to make the official announcement within this week after
successfully holding series of meetings with stakeholders.
A source at the Commission revealed this to Oman FM, however,
it could not confirm what percentage increment consumers
should expect.
“The way the parameters are going, there will be a slight
increment. But I wouldn’t be able to tell you,” the source said.
Consumers of utilities especially electricity, have enjoyed
between 10% and 30% reduction in tariffs since March 2017.
Despite the reduction in tariffs more than a year ago, some
stakeholders including Association of Ghana Industries (AGI) and
Trades Union Congress, believe the tariffs regime in Ghana
especially electricity, is too high as compared to other countries
in the subregion.
They want utility tariffs to be reduced further in order to bring
some relief to them.
However, utility service providers have also made a strong case
for increase in tariffs.
They argued that the reduction in tariffs has actually affected
them in so many ways as funds needed for infrastructure
development had not been forthcoming.
Ghana Grid Company (GRIDCo) is demanding an adjustment
from the current 2.5107 GP/kWh to 4.897 Gp/ kWh (exclusive of
transmission losses), which is considered cost-reflective to
cover Operating and Maintenance Costs, Depreciation, Finance
Costs and a reasonable Return on Net Fixed Assets for 2019
while NEDCO proposed an increment from the existing 0.307555
per kWh to 0.43 in 2019.
The Ghana Water Company Limited is demanding an increment
from 0.0062 Gp per litre to 0.022 Gp per litre to help recover the
loan payment and address its current challenges.