The Institute of Energy Security (IES) has described the timing for the move for an upward review of electricity tariffs as problematic.
Speaking on behalf of the institute, Research analyst at IES, Fritz Moses,;said although the request for a review is legitimate,;the timing is inappropriate considering the impact of COVID-19 on individuals and businesses.
“The timing of this incident we think is problematic because currently citizens are feeling the pain of the COVID-19 pandemic. So, burdening them again with the new tariff increases will not augur well for the living standard of Ghanaians. Already you have increased prices of petrol.
“Although the ECG and PURC would be doing a role that is their mandate,;it wouldn’t be right looking at the timing of the increase.”
Fritz Moses
Also, sharing his thoughts on the review of tariffs, the Chief Executive Officer of the Consumer Protection Agency, Kofi Kapito,;says any possible increment in electricity tariffs would not be ideal.
“The timing is very wrong considering what the Ghanaian is going through when it comes to these recent power outages. The outages are the concern of the Ghanaian. I think if the outages are solved or resolved, we can look at these new tariffs that ECG is proposing.”
Kofi Capito
Though he acknowledged the need for an increase in tariffs, he has instead urged the Public Utility Regulatory Commission (PURC);to focus on seeking compensation for customers who have lost electrical gadgets;due to the recent erratic power supply.
“PURC should actually look at what has gone on with the recent power outages as to how they will compensate Ghanaians who might have their appliances destroyed.”
Kofi Capito
PURC to review proposed tariffs
However, the Public Utilities and Regulatory Commission, has indicated that they will revise the proposed tariffs by the Electricity Company of Ghana and the Ghana Water Company Limited.
Head of Public Relations of PURC, Bawa Munkaila, disclosed that the two utility companies, Electricity Company of Ghana (ECG) and the Ghana Water Company (GWCL), have made a strong case for a new tariff regime that will cover their operational cost and as such their proposals will be reviewed to determine their merit.
The request for an increase in tariffs has come from the Electricity Company of Ghana (ECG).
In the midst of the current trend of intermittent power supply, ECG, says it needs an increment in its tariffs to aid its operational activities. The last increment in electricity tariffs was in October 2019 which saw a 5.94% increment in the tariffs.
The proposed increase in electricity tariffs by the Electricity Company of Ghana (ECG) has met stiff opposition by a section of the public.
However, the Managing Director of ECG, Kwame Agyeman-Budu has said it is necessary because the company needs more funds to support its operations and be more effective. The current proposal will only materialize after approval from the Public Utilities and Regulatory Commission.
