02.06.2022 Social News

Blame PURC’s inefficiency for demands for increase in utility tariffs – COSECA

Blame PURCs inefficiency for demands for increase in utility tariffs – COSECA
02.06.2022 LISTEN

The Coalition of Stakeholders on Electricity Contracts and Arrangements (COSECA) is blaming the inefficiency on the part of the Public Utility Regulation Commission (PURC) as the cause of the demands by utility companies for an outrageous upward adjustment in utility tariffs.

According to the Coalition, the suspension of the Automatic Adjustment Formula and the failure by the PURC to dole out funds accrued from the Distribution Service Charges to utility companies like the ECG are incapacitating the companies.

The demand by the ECG and GWCL for a 144% and 334% upward adjustment in utility tariffs, respectively, has received widespread condemnation.

In a statement, the group called on the PURC to be efficient in the delivery of its work because “our utility companies can do better with improved corporate governance practices, resources, accountability without government interference and political electrification schemes.

“The PURC in our honest opinion has been very inefficient, mismanaged and at best seems not to appreciate their role, or are grossly incompetent at it. There is enough blame sharing to go round from government to management of utility companies, however the PURC is the number one reason why we have the tariffs currently piled up, and resulting in ECG's demand for 148% and GWCL's 334% upward adjustment in tariffs.”

The Electricity Company of Ghana had proposed that its tariffs be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.

The proposed sharp increment, according to ECG, is due to the gap between the actual cost recovery tariff and PURC-approved tariffs as well as the cost of completed projects.

The GWCL also argued that while the average tariff per cubic metre in 2019 was 1.27 USD, the same was reduced to USD 1.13 as a result of cedi depreciation.

The GWCL said this has affected its ability to carry out repairs and replacements of aged and obsolete equipment and pipelines.