Power suppliers join forces for upward tariff review

Electricity services providers have justified the need for an immediate increase in electricity tariffs.

The Volta River Authority (VRA) that generates the power, GRIDCo, which is in charge of transmission and the Electricity Company of Ghana (ECG), which distributes the power, have all submitted proposals for an upward review of tariffs.

At a news conference in Accra on Monday, the three argued that the Public Utilities and Regulatory Commission (PURC) would have to favourably respond to their requests for increases in tariffs so they could at least meet production costs.

Chief Executive of GRIDCo, Charles Darku, said government must heed the companies' request to enable them provide quality services.

“The choice is hard, it's coming at a difficult time, the payment has to come, you have to cover the cost of your production. If you don't cover your cost, first, what you cut out is investment, then you cut maintenance,” he said.

“We want to appreciate consumers' concern about the cost of service. Consumers need to appreciate that the alternative to the absence of a power system is that they would find the power themselves, and that's going to be more expensive.

Mr Darku said the tariffs increases will ensure that the providers are able to replace old facilities.

“And if you don't act now to replace 45-year-old equipment, in five years they will be 50 years, in ten years they will be 60 years [and] there is no way you can keep them going.”

Listen to the attached audio for excerpts of Mr Darku's comments