11% increment in electricity tariffs best so far - ACEP

The African Centre for Energy Policy (ACEP) has described the 11% increment in electricity tariffs as the best so far.

Speaking in an interview with Nyankonton Mu Nsem on Rainbow Radio 87.5Fm, Mr. Benjamin Boakye, the Executive Director of ACEP said, the increment is a reasonable one compared to previous years.

ACEP had raised concerns over delays by the Public Utility Regulatory Commission (PURC) to communicate the tariff which the Commission announced in February would take effect from 1st July 2019, following the mandatory major tariff review consultations in January this year.

After 24 hours of issuing their statement on the matter, PURC has issued a statement announcing that it has approved an 11% tariff increase for recovery of total electricity revenue requirement for the regulated electricity market, effective July 1, 2019.

The PURC said it took the decision after it received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sections: Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PPDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC).

The statement said extensive technical and financial analyses of the proposals were undertaken.

Commenting on it, Mr. Benjamin Boakye said it was good for the PURC to release the statement since the move would allow consumers plan and prepare for the possible effects.

He said, expectations were between 30-50% but it is good that we have an increment of 11%.

He has however, admonished the PURC to periodically release the adjustments in order not to accumulate it since it would negatively affect consumers.

He said although the increment would affect consumers, it was far better than previous years.

‘’We should be mindful that without an increment, there would be no stability in the energy sector and when that occurs, we would go back to dumsor,’’ he noted.

He was of the view that if the variables point to an increment, Ghanaians should accept the increment and when the variables point to a reduction, consumers have to benefit from it.