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Business News of Monday, 21 January 2019

Source: citinewsroom.com

Ignore reports about reduction in electricity tariffs – PURC

The Public Utilities Regulatory Commission (PURC), has asked electricity consumers to disregard speculations about a reduction in electricity tariffs effective 1st February.

According to the Commission, such claims are baseless as they’re merely rumours.

The PURC is set to announce new tariffs on February 1. But even before the official announcement is made, some persons are speculating a reduction in the cost of electricity.
Some have also said the cost of electricity is expected to increase particularly as the new partner for the Electricity Company of Ghana comes on board. But the Head of Public Affairs and External Relations of the PURC, Bawah Munkaila, says they are yet to arrive at a decision as to what the new tariffs should be.

“I will say it should be disregarded because it is pre-empting the decision of the Commission. As at now, the Commission has not made a decision yet, but there are speculations that there will be tariff increment and another said there will be tariff reduction. The coming on board of a concessionaire taking over ECG, we expect better result. However, the takeover of the distribution company does not alter the processes of PURC coming up with major tariffs. Whatever regulatory parameters we’ve been using remains the same,” he said.

Meanwhile, the Trades Union Congress is proposing a 15% reduction in electricity tariffs.

The TUC said the Public Utilities Regulatory Commission (PURC), and other bodies must take into account the income levels of Ghanaians before any adjustment is made for 2019, as high increment in the tariffs will worsen the plight of Ghanaians.

The last public hearing on the tariff adjustment was held last week to enable the service providers to present their proposals before the stakeholders for consideration.

The utility companies that attended the meeting were the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo), the Northern Electricity Distribution Company (NEDCo), Enclave Power Company Limited, a Ghanaian-owned private power distribution company, Ghana Water Company Limited, and the Power Distribution Services Limited (PDS), which is taking over the ECG.