The Public Utility Regulatory Commission (PURC) is scheduled to meet with utility service providers today, Wednesday, to discuss proposed tariff increment.
The Electricity Company of Ghana proposed increasing its costs by 148 percent for 2022, with 7.6 percent average modifications from 2023 to 2026.
According to ECG, the proposed sharp increment is due to the disparity between the actual cost recovery tariff and the PURC-approved rates, as well as the cost of completed projects.
In a similar paper, the Ghana Water Company proposes an increase in prices to at least repay its operational costs.
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According to some observers, the amount users pay for electricity is grossly inadequate to support the ECG’s activities.
These planned increases come at a time of intense debate over rising living costs and growing inflation.
However, service providers argue that the increase is required to keep them afloat.
According to the GWCL, while the average rate per cubic metre in 2019 was 1.27 USD, it was cut to USD 1.13 due to cedi devaluation.
The GWCL claims that this has hampered its capacity to repair and replace ageing and outdated equipment and pipelines.
The current domestic rate of GHS3.29 per cubic metre to users within 0-5 cubic metres for the GWCL is less than what the poor in rural regions pay, which is about GHS10.
The Ghana Water Company Limited claims that it is burdened with a monthly loan payment of $7.93 million, which is 47.15 percent of its average monthly revenue.
According to the GWCL, it has no choice except to collect the debts through rates.
SOURCE: CITINEWS
