14 minutes ago | Business & Finance New Utility Tariffs Looms After Public Review – PURC By Modern Ghana
The Head of Communications of the The Public Utilities Regulatory Commission (PURC) has assured electricity consumers in the country that the tariffs will not be adjusted until the review processes have been completed across the country.
Mr. Bawa Mounkaila explained that the review process has been completed in some parts of the country and is currently on-going in Kumasi and scheduled to take place in Accra on Monday.
He explained that there have been instances in the past where utility tariffs were reduced after a review despite the utility service providers asking for an increment.
He added that the although some groups with interests and other utility service providers have been proposing a new percentage increment, the final decision will be done only after the review process.
“As at now, from the angle of PURC, I cannot guarantee how the tariffs will go until we are done with the reviewing processes reviewing the tariffs and as you know we started the review process somewhere September last year and as I mentioned, it is a process and currently as we speak we are going the public hearing across the country.”
“We have done in Tamale and we are currently in Kumasi and we will do one in Accra on Monday. As you know even in the 2018 tariffs that was submitted by the Utilities, you bear with me that some of the utilities was asking for an increment but at the end when the PURC we did our analysis, we came out that the Tariffs was to be reduced and we reduced it. So the submission of proposals and proposing a particular percentage for increment does not justify that at the end of the day that is what is going to be passed to the consumer.” Bawa Mounkaila said.
Ahead of the move, the Minority in Parliament is, however, predicting a sixty percent increment in electricity tariffs due to its existing debt of about GH¢ 2 billion.
New company to take over ECG
The new entity that will assume the assets and operations of the Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited is set to take over from the first of February this year.
The move is expected to see the power distribution company receive some funds to expand its operations as well as build a new bulk station in Pokuase in the Greater Accra region.
Meralco Consortium, a Philipino power company which won the bid to take over the operations of ECG is a major shareholder in PDS.
Speaking to Citi Business News, the Chief Executive Officer of the Millennium Development Authority (MiDA) Martin Eson-Benjamin disclosed that the company will be injecting 580 million dollars into ECG.
Mr. Eson Benjamin was hopeful the funds will turn around the operations of the ECG to help stabilize the country's power distribution.
“We have gone through many processes and now I can tell you that everything is almost completed for the new company to take over. The takeover will bring efficiency and we will all see the improvement in the new company,” he assured.
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