Utility companies make case for proposed tariffs

Kumasi, March 22, GNA - The public utility companies on Monday used a public forum in Kumasi, to collate views on the proposed tariff increases, to make a case for the extra revenue they are asking for. The Volta River Authority (VRA), Electricity Company of Ghana (ECG) and the Ghana Grid Company (GRIDCo), the three main power producers, are asking for an upward adjustment of the kilowatt hour charge from 12.77 Ghana pesewas to 32.53 Ghana pesewas.

The Ghana Water Company Limited (GWCL), on its part, is demanding that for every gallon on water, consumers should pay 0.8 Ghana pesewas instead of the current 0.66 Ghana pesewas.

Justifying the need for the tariff review, Dr Nicholas Smart-Yeboah, Director, Customer Services of the ECG, said growth of consumer population was putting tremendous pressure on its weak and obsolete equipment, resulting in high commercial losses. It has become necessary to replace the facilities and build the capacity of the staff for efficient operation to meet the growing demands of customers.

Dr Smart-Yeboah said the ECG has planned to extend power to about 530 rural towns in 26 districts and expand the network in 412 others that are already on the supply line.

This could not be achieved if the company continued to charge the current low tariff and appealed to the public to show understanding. Mr Eric Asare, Acting Director, Systems and Operations of GRIDCo, said tariff increase would help the company to provide more transformers and other transmission equipment.

Mr Kofi Ellis of the VRA said Ghana was leading in energy consumption per person in the West African sub-Region and this makes it pertinent to mobilise more resources to improve efficiency. He said there was the need to increase existing plants to boost the capacity of the VRA to generate enough power for domestic and industrial consumption. 22 March 10