We’re operating at a high loss so our proposed 148% increment in tariff is justified-ECG
The Electricity Company of Ghana (ECG) has justified reasons why it is demanding for 148% increment in tariff.
The power supply says if the proposal is approved, the company will not adjust tariffs above 10 percent year-on-year for five years.
General Manager for Regulatory Management at ECG, Sylvia Noshie, speaking at a stakeholders’ consultative meeting for the multi-year major tariffs review under the auspices of the PURC maintained that the ECG needs the increment to sustain the company
“We are not faulting the Public Utilities Regulatory Commission [for not allowing us to increase tariffs over the years], but as a utility service provider, it is having a negative impact on our operations. Over the period, if you put these minimal increases together, you are getting a very wide gap between the prevailing tariffs and what we will call a cost recovery tariff. The tariff has reduced considerably”.
She added that “In the last few years, the only quarter adjustments we had was on October 1, 2019, and it was just 0.47 percent. Unfortunately for us, the last tariff approved by the regulator saw a 14% reduction on the previous tariff of March 2018. This has been the pattern over the years. Usually, we will come up with our distribution cost and proposal, but what you get the Commission to approve is very minimal”.
Aside from the 148% increment in tariff for 2022, “The ECG is also proposing to the PURC to introduce a street light tariff. Studies by the Ministry of Energy estimate the cost of streetlights to be 108.65 million dollars a year. Currently, on the bill, we all see the public light levy and that’s 30 percent of the actual cost.”