PURC Maintains Tariff

The Public Utilities and Regulatory Commission (PURC) has announced that it will not increase electricity and water tariffs in the first quarter of 2015.

According to the Commission, it considered the movements in the variables that underpin the Automatic Adjustment Formula.

Dr. Emmanuel Annan, Chairman of PURC, who made this known in a statement, said two of the variables- Crude oil price and the exchange rate- are pointing in a positive direction of a reduction and stability respectively.

He however said the price of natural gas from the West African Gas Pipeline has increased whilst the generation mix was moving towards a dependence on thermal generation due to the challenges being faced with the hydrology of the Akosombo, Kpong and Bui hydro electric dams.

'It should also be noted that the Commission, in arriving at a tariff decision, always looks at a smoothing impact of the variables of the Automatic Adjustment Formula and does not consider spikes that are association with the movements of these variables,' Dr. Annan said.

He said, 'The demand forecast (average 12 percent) as it stands is making the Volta River Authority (VRA) and other independent power producers procure more fuel to generate electricity to meet the growing demand and especially at this time of the year when consumers are using a lot of cooling agents and equipment to battle the change in weather conditions.'

Dr. Annan said during this period of a shortfall in electricity supply, the Commission is continually monitoring the situation to ensure that the impact of the current situation on consumers is minimized.

'Amidst the challenges being faced by consumers in the provision of electricity and water, the Commission reiterates its commitment to ensuring the delivery of the highest standard of utility service to all consumers and the public at large,' he said.

By Cephas Larbi
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