Ghanaians should brace themselves for higher utility bills as tariffs are expected to rise. According to recent news, the bill adjustment, once announced, will take effect on Thursday, September 1.
Since 2017, there hasn’t been a review of utility rates until now. This follows nationwide consultations on proposals the Public Utilities Regulatory Commission (PURC) received from the utility companies.
According to them, new tariffs won’t be applied uniformly; rather, the rates will depend on the justifications and supporting evidence put forth by the utilities and the results of the commission’s verification.
It stated that existing state taxes and levies would not be included in the tariffs that would be announced. Micro, small, and medium-sized businesses (MSMEs), including restaurants and salons, would be exempt from paying “punitive” tariffs, according to the report.
The Electricity Company of Ghana (ECG) asked for a 148 percent tariff increase in May 2022.The power distributor requested that the adjustment cover the years 2019 through 2022 in its proposal to the PURC.
Additionally, the business suggested a tariff increase of 7.6 percent on average over the following four years to cover Distribution Service Charges (DSC).
The Ghana Water Company Limited (GWCL) additionally requested a 334 percent tariff increase. In its proposal, the GWCL claimed that over time, the approved tariffs had not been entirely cost-reflective.
The Ghana Grid Company Ltd. (GRIDCo) has proposed 48 percent, while the Volta River Authority (VRA) has also put forth a 37 percent proposal.
In the meantime, the PURC conducted a survey after receiving the utility companies’ proposals, and 851 respondents from all 16 regions answered the questions.
According to the survey, 44% of respondents believed that the current electricity tariffs were out of proportion to the level of service provided by the electricity utilities.
They cited, among other things, the frequent voltage fluctuations and the subpar customer service as justification.
Regarding electricity rates, 55% of respondents thought they were high, while 42% thought they were fair.
Once more, half of the respondents said that the current water tariffs were not justified in light of the subpar service delivery, which included frequent water supply interruptions.
As a result, 57 percent of respondents thought the current water tariffs were high, while 41 percent thought they were fair.
Source:Bronzeman
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