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General News of Wednesday, 10 February 2010

Source: GBC

PURC denies increase in utility tariffs

The Public Utilities Regulatory Commission, PURC has denied there has been an increase in utility tariffs with immediate effect. According to the Commission, though it has received proposals from the Volta River Authority, Electricity Company of Ghana and Ghana Grid Company for about 500 percent upward review of the tariffs, PURC is yet to consider the legitimacy of the proposals.

Speaking to Radio Ghana in Kumasi, the Ashanti and Brong Ahafo Regional Manager of the Commission, Ishaku Yacubu said, while Volta River Authority is demanding 155 percent increase, the Ghana Gird Company is requesting for 173 percent increase and ECG wants 105 percent upward adjustment.

He said the last time that the utility tariffs were increased was in 2007 and that the agreement was that, the VRA was going to generate about 65 per cent of power from Akosombo and 35 per cent from the Aboadze Thermal Plant which is very expensive. However, it turned up that the thermal plant generated about 25 percent within the period, which is far less than expected. Therefore there is not enough justification for the huge upward adjustment.

Mr. Yacubu said the Public Utilities Regulatory Commission as an independent body, works in collaboration with the consumer associations and other interest groups to ensure that both the consumer and suppliers are fairly treated. He appealed to consumers to exercise restraint and not panic over the allegations, as the Commission is there to take care of their interests.