PURC reduces electricity tariffs; 17.5% for homes, 30% for businesses


PURC reduces electricity tariffs; 17.5% for homes, 30% for businesses

The Public Utilities Regulatory Commission (PURC), has announced a general reduction in electricity tariffs effective March 15, 2018. Residential customers per the new tariff cuts are to enjoy a 17.5% reduction, while non-residential customers will see tariffs cut by 30%. Those in the mining sector have also been given a 10% tariff cut, and 25% cut for Special Load Tariff Customers (LV, MV & HV). This was captured in a statement from PURC, signed by its Executive Secretary, Mrs. Mami Dufie Ofori.

The Commission said the decision was arrived at after extensive consultations with stakeholders in the sector, as well as detailed analysis of proposals tendered in by companies in the power distribution chain. “The PURC after extensive stakeholders’ consultations, detailed technical analysis of utility tariff proposals and consideration of inputs and concerns of consumers, has approved tariff reductions for various electricity consumer categories, effective 15th March 2018.”

The Commission received tariff proposals from the utility service providers in the electricity sectors namely, Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company Limted (EPCL) and the Ghana Water Company Limited (GWCL), ” the statement added.

No cut in water tariff

The Commission however failed to reduce water tariffs. “Review of water tariffs require further consultations and the Commission is unable to announce a decision at this time. Water tariffs therefore remain the same and a decision will be taken in the coming weeks,” the statement said. 

Gov’t urges PURC to reduce tariffs 

This comes on the back of government’s recommendation for a reduction in electricity tariffs to lighten the burden on Ghanaians. President Akufo-Addo subsequently in January 2018 announced an average of 14% reduction in electricity tariffs for non-residential users. “From January this year, the non-residential tariff rate, which is the rate which includes all of you here, is being reduced by an average of 14%. For barbers, it is being reduced by 18%; for hairdressers and beauticians, 15.7%, and for tailors, 9.8%,” he added.

Don’t be bullied into excessive tariff reductions – Bawa to PURC

A member of Parliament’s Mines and Energy Committee, Edward Bawa, had earlier advised PURC not to yield to any pressure from government to reduce tariffs beyond realistic margins. Mr. Bawa also encouraged the PURC to withstand what he termed as “bullying” from government and put the interest of the country ahead of political interest with regards to the adjustment of utility tariffs.

“I appreciate the enormity of the task before the PURC. Particularly as the Government, led by no less a person than the President of the republic, has been breathing down the Commission’s neck to ensure that an electoral promise is fulfilled even if it is at the peril of the Power Sector. The Commission must be bold and stand up to bullying government and place the long-term interest of the state above a political party’s interest,” he said in a statement. 

Source: Godwin Akweiteh Allotey, Citifm Online, March 5 2018. 
Online: http://citifmonline.com/2018/03/05/purc-reduces-electricity-tariffs-17-5-for-homes-30-for-businesses/ 

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