100% Tariff Increase Based On High Cost Of Operation – ECG

Electricity Company of Ghana (ECG) has said the constant depreciation of the cedi is the main reason they are asking for a 100 per cent increment in tariffs. Utility providers in the country are calling for over a hundred per cent increment in tariffs for 2015. The (ECG) wants the present tariff of 16 pesewas per unit to be increased to 35 pesewas, while the Volta River Authority (VRA) is demanding an increase from 15 pesewas to 30 pesewas per unit. The Ghana Water Company Limited (GWCL) has also proposed an increase from GHC1.70 per cubic metre to GHC4. For its part, GRIDCo wants an increment from 4 pesewas per unit of transmission to 5 pesewas. The proposals from the service providers were made during a public forum organised by the Public Utilities Regulatory Commission (PURC) in Kumasi on Tuesday. Some Ghanaians who were at the forum rejected the proposals by the utility companies. According to them, the services provided by both the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) does not warrant any form of increment. However the Public Relations Officer of the ECG, William Boateng explained in a Citi News interview that their demand is based on high operational cost adding that “we are being measured on the forex exchange.” “We made mention of cost of living. So our operational cost is ascending…” He said during the hearing, there were presentations from utility institutions including the VRA and GRIDCo” saying “they also made mention of the cost of generation.” “So we have done our part our customers have also put across their point and we will leave the rest to PURC, they will go in and look at both sides and state their stance,” William Boateng added. He said “I don’t want it to seem as if once we have made a case then it is a done deal, and that PURC must approve it by any means possible, no, we have not said that. They are independent and they are in the middle between the consumer and the utility companies.” The PRO also insisted that though consumers have kicked against their proposals he said if such agitations from the public continues, it is the nation that will be affected. “…We understand where our consumers are coming from but we are also explaining that we cannot continue like this when the cost of operation and generation is going up…”

Source: Citifmonline.com