Research and Policy Analyst at the Institute for Energy Securities (IES), Emmanuel Derrick Xatse, has stated that he will fault the Public Utilities Regulatory Commission (PURC) for the proposed 148 percent increment in electricity tariffs by ECG.
According to Mr. Xatse, although an increment is expected, PURC is to blame because it has given room for the utilities to operate at losses.
“In the 2022 energy statistics data, PURC estimated that there should be technical losses of almost 12.5 percent margin for GRIDCo. That means that you were giving them the go ahead to run at a loss. If we are able to reduce these kind of losses to the barest minimum, we wouldn’t be here asking for these kind of increment.”
Emmanuel Derrick Xatse
Emmanuel Xatse admonished ECG to improve its revenue collection by checking the illegal connections and make sure that whatever government is owing them, it’s able to pay. He stated that if the MMDAs and the Ministries are able to pay their cost reflective tariffs that they are owing ECG, it will be able to operate efficiently.
“So, they need to expand, go round and reduce the technical and commercial losses. GRIDCO will also have to reduce the transmission losses and we will be able to have enough money to operate efficiently and the ordinary consumer wouldn’t be over burdened with over 100 percentage increment.”
Emmanuel Derrick Xatse
ECG has been running at a loss
Emmanuel Xatse lamented that ECG has been running a lot of technical and commercial losses, which is no fault of the ordinary consumer. According to him, even if for technical reasons, ECG is runs at a loss it shouldn’t burden consumers.
“But knowing all these things, we know that the grid system is not solid enough to be able to transmit all the power that is needed. Taking last Friday for example where the weather was not good, the grids failed. We expect them to have tariffs that are reflective enough that will ensure efficient operations and maintenance of the grid.”
Emmanuel Derrick Xatse
Accessing if the proposed increment is justified, Emmanuel Xatse posited that for the past 4 to 6 years, ECG has not had a major tariff review, as such, he thinks that is enough reason to ask for an increment. However, he indicated that “there will be certain things that will raise an alarm as to whether the 148 percent increase in tariff should be accepted or not”.
Mr. Xatse intimated that IES is interested in costs “that are reflective tariffs”. So, as any organization, it expects ECG or any utility company to be able to operate and maintain its activities.
“Taking ECG for example, we expect them to be efficient in their operations to be able to maintain the grid and be able to provide power to us at any point in time that we need or we care for it.”
Emmanuel Derrick Xatse
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