The Public Utilities Regulatory Commission (PURC) has justified reasons for the adjustment of the 2nd Quarter Tariff Decision of the Commission, which took effect yesterday June 1.
Executive Secretary of the Commission, Dr. Ishmael Ackah, who explained the decisions at a fellowship training programme held for some journalists in Accra said the recently announced quarterly tariff decision is to recoup an amount of GH¢1.3149 billion over the next quarter.
That, he explained will help purchase fuel to generate power, transmit, distribute and continuously serve consumers.
“To recover the full amount, electricity tariffs should have been increased by 27.51%. However, given the approved tariff of 18.36%, an amount of GH¢877.70 million will be recovered, leaving a balance of GH¢437.22million to be recovered. On the other hand, the amount to be recovered through the water tariff is GH¢ 650,267,161 million’’.
He, however, mentioned that given the approved tariff of 18.36%, an amount of GH¢877.70 million will be recovered, leaving a balance of GH¢437.22 million to be recovered. On the other hand, the amount to be recovered through the water tariff is GH¢ 650,267,161.
Dr. Ackah also stated that the Commission from September 2022, undertook a major tariff review (2022-2025) in which, it considered the cost of operation for regulated utilities in terms of the exchange rate, inflation, cost of fuel and other factors.
“To this end, the Commission per its guidelines considers these four factors (exchange rate, inflation, energy mix and cost of fuel) and adjusts electricity tariffs on a quarterly basis to restore value of the tariffs and to meet the revenue requirements of the utility service providers. This is what is referred to as the Quarterly Tariff Adjustment. A similar approach is applied to water tariff,” he added.
The Executive Secretary further assured the public of the Commission’s readiness to effectively communicate its decisions to promote a financially sustainable energy and water sector.