Coalition of Stakeholders on Electricity Contracts and Arrangements (COSECA), has revealed that the Public Utility Regulatory Commission (PURC), is to be blamed for utility tariffs piled up in the country.
According to the Coalition, PURC for the past few years has refused, “failed or neglected” to implement the automatic adjustment and quarterly adjustment formula. This, it explained, has led to the “accumulation of high tariffs over the period”, thereby burdening the consumer with accumulated tariffs.
“The Public Utility Regulatory Commission (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.”
COSECA
COSECA indicated that it is the core mandate of the PURC to ensure that technical and commercial losses are at their barest minimum through effective monitoring and evaluation of the utility companies. However, it highlighted that the lack of effective monitoring and evaluation has led to an increase in technical and commercial losses of the utility companies, and it cannot be allowed to continue.
“The poor customer cannot keep bankrolling the incompetence of the PURC in ensuring improved services, and reduced losses in the operations of the utility companies.”
COSECA
PURC urged to monitor portfolio of VRA’s generation mix
The PURC, the Coalition expressed, has also failed to monitor the utilization of legacy hydro, which is power generation from Akosombo and Kpong. This, it explained, has imposed punitive generation tariffs on the consumer.
“It is important for the PURC to check and monitor the portfolio of VRA’s generation mix between legacy hydro and thermal power generation, as both have implications on tariffs. In summary, we are saying that, the PURC’s failure to monitor and measure what quantity of the power supplied is hydro or thermal allows VRA to say what amount of their power is thermal, which cost more than hydro without it being independently verified by PURC.”
COSECA
To address the situation, COSECA stated that the PURC must ensure VRA is metered. It noted that for several years, this has not been done, questioning the Commission whose interest it is serving.
Meanwhile, COSECA has expressed its resolve to support an upward tariff adjustment in the country. It noted that, this is to ensure “our utilities do not grind to a halt, considering the economic challenges that all sectors are currently facing”.
COSECA revealed that from the PURC’s own publication of electricity tariffs published on 16th December, 2020, and its gazetted tariff of 1998 to 2019, it is very clear in its minds that if the PURC “was to do its work properly, we should not see more than 20% in electricity” tariff adjustment.
“… And should the electricity tariffs be 20% or less, it will automatically also lead to a reduction of water tariffs as electricity constitutes about 30% of the cost of water.”
COSECA
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