GRIDco: Tariffs increment is a “reduction in real terms”

Power Transmitter, Ghana Grid Company (GRIDco) says the recent 13.5 percent increment in tariffs granted it by the Public Utilities Regulatory Commission (PURC) is “inadequate”.

GRIDco, which conveys power from power producer, Volta River Authority, (VRA) and other generating companies to bulk customers such as the Electricity Company of Ghana (ECG), submitted proposals for an upward tariff adjustment of 39.36 percent.

The VRA requested an increment of 137.5%.

The ECG which distributes power to homes and businesses requested a 166% increase in tariff across board while the Ghana Water Company demanded an increase of 99.39%.

However, the Public Utilities Regulatory Commission (PURC) approved 78.9 percent for electricity and 52 percent for water after various meetings with the service providers.

In a statement signed by the Head of Public Relations of GRIDco, Albert Kwesi Quainoo, the power distributor said it “wishes to inform the general public that the recent increment in tariffs by the PURC…is a 13.5 percent increase of the 39.89 percent GRIDco currently needs to optimally operate”.

The company said: “The recently announced tariff increment does not assure the financial viability of GRIDco’s electricity transmission business”.

It said: “The 13.5 percent transmission service charge approved by the PURC in September 2013 is a 10.83 percent reduction in real terms when compared to the increase in December 2011”.

“This has reduced GRIDco’s ability to meet its financial obligations and purchase sparse and other critical equipment”, the company bemoaned.

It said: “The tariff increase GRIDco requested is needed to financially sustain the company’s electricity transmission business and to ensure its continued viability”.

GRIDco noted that the company requires “upward adjustment of the tariff to continue to undertake the investment being made in the transmission system in order to reinforce and modernise the network across the country and ensure reliable evacuation of power to customers”.

It said it “agrees with public concerns for automatic tariff adjustment to be reintroduced and enforced from next year to enable the company to efficiently operate and maintain the system as well as service repayment of loans which have been contracted for capital works associated with its network expansion”.

The statement said: “In spite of the inadequacy of the current tariff, GRIDco assures the public that it will continue to work hard to provide quality, reliable and efficient electricity transmission service across the network and to the distribution companies”.