Skip to main content

UTILITY TARIFFS ARE EXPECTED TO GO UP EFFECTIVE SEPTEMBER 1, THIS YEAR.



Utility rates are set to rise next week for the first time since 2017. This comes after the Public Utilities Regulatory Commission (PURC) conducted nationwide consultations on utility company proposals. According to a source familiar with the stakeholder consultations, the PURC engaged identifiable groups and relevant sections of the public in addition to the public fora across the 16 regions and had considered all sides of the arguments in arriving at appropriate tariffs. The new tariffs will not be uniform, which means that the rates will be determined by the utilities' reasons and proofs, as well as the commission's verification. According to another source, the tariffs that will be announced do not include taxes.

In May of this year, the utility companies presented proposals to the PURC based on the regulator's guidelines. While the Ghana Water Company Limited (GWCL) proposed a 300% increase over its current tariffs, the Electricity Company of Ghana (ECG) proposed a 148% increase, the Volta River Authority (VRA) proposed a 37% increase, and the Ghana Grid Company Ltd (GRIDCo) proposed a 48% increase. Other proposals included a 38% increase over the Northern Electricity Distribution Company's existing tariffs from the only private power distributor, Enclave Power, and a 113% increase over the Northern Electricity Distribution Company's existing tariffs (NEDCo).

The tariff proposals were in line with policy directives to gradually eliminate "punitive tariff bands" that discouraged consumption. This included forcing industry to pay more to cushion residential consumers, which increased the cost of doing business and made industrial operations more expensive. The multi-year tariff adjustment is also expected to enable the PURC and utilities to commit to the quarterly "automatic" adjustment system, support industrial development, and improve utility efficiency. Another source familiar with the consultations and computations told the Daily Graphic that in arriving at The regulator considered external and internal economic conditions, as well as the need to keep utilities operational, allowing them to do routine maintenance and finance developments, among other things, when determining the various tariffs.

The PURC also subjected all costs proposed by utilities to rigorous assessment and validation, including site visits to some of the investments. It accepted loan servicing costs for approved investments, while state-owned utilities were asked to freeze all discretionary spending this year. Among other things, the regulator requested and critically evaluated proposed utility investments.

In addition, the PURC conducted a survey, with 851 respondents from all 16 regions completing the questionnaire. According to the survey, 44% of respondents believed that current electricity tariffs were not commensurate with the quality of service received from electricity utilities due to frequent voltage fluctuations, poor customer service delivery, and other factors. In terms of electricity tariffs, 42% of respondents thought they were fair, while 55% thought they were high. Again, half of those polled said that current water tariffs were unjustified, citing poor service delivery in the form of frequent water supply outages. As a result, 41% of respondents thought current water tariffs were fair, while 57% thought they were high.

According to the source, the PURC would also establish efficiency benchmarks to which utilities would adhere so that inefficiencies would not be passed on to customers. "The PURC establishes loss benchmarks, most of which cover technical losses, to ensure that inefficiencies are not passed on." The benchmark was 4.2%, and if you incur 10%, the PURC will deduct the benchmark and the utility will pay the remainder, it explained.

Labels:

Comments

Post a Comment

Popular posts from this blog

THE JOAN GAMPER TROPHY PITS FC BARCELONA AGAINST PUMAS UNAM.

   The Joan Gamper Trophy, also known as the Joan Gamper Cup, was established in 1966, with the Blaugrana inviting Anderlecht from Belgium, Nantes from France, and Koln from Germany to the inaugural event. It had four participants until 1997 Barcelona and three other invitees and consisted of two semi-final ties, a third-place playoff, and a final. The Blaugrana won their first championship, defeating Cologne 3-1 in the final. Due to an increased fixture list, the Joan Gamper Trophy underwent changes in 1997, abandoning the previous format in favour of a one-off match style. Furthermore, there is no extra time in the competition, with a penalty shoot-out deciding the winner if the game is tied after 90 minutes. This tournament has drawn teams from all over the world, including fellow Spanish powerhouses Atletico Madrid and Valencia, as well as South American behemoths Boca Juniors, River Plate, and Santos. In 2017, Barcelona invited Chapecoense to the 52nd Joan Gamper Trophy...
Post a Comment
Read more

EVERYTHING YOU NEED TO KNOW ABOUT APPLE'S NEW IPHONE 14 AND 14 PRO

iPhone 14 is only a few weeks away, but leaks have already revealed much of what to expect. According to early reports, the new handset will include significant new features, improvements, and the removal of some well-known design elements. The phone, along with a slew of other products, will be released by Apple in September. But here's everything we know about the iPhone 14, including a possible date for the big Apple event. According to numerous reports, Apple has finally removed the notch that is cut out of the top of the display in the new devices. Instead, all of the components that are hidden there, such as the facial recognition sensor and front-facing camera, could be placed in a small cutout at the top of the screen, allowing the display to extend all the way up. That redesign could be limited to Pro models only. Rumours suggest that regular iPhones will have the same notch as the iPhone 13. Otherwise, the design is expected to stay largely the same. There may be some tw...
Post a Comment
Read more

BRENTFORD FACES MANCHESTER UNITED.

  Manchester United will look to bounce back from their opening-weekend defeat to Brighton & Hove Albion when they face Brentford in the Premier League on Saturday. Last Sunday, the Red Devils were defeated 2-1 at home by the Seagulls, while Brentford came from two goals down to draw 2-2 with Leicester City in their season opener. Last weekend, Brentford appeared to be heading for defeat at the King Power Stadium, with Timothy Castagne and Kiernan Dewsbury-Hall on the scoresheet for Leicester, who led 2-0 in the 46th minute, but Ivan Toney halved the deficit just past the hour before Josh Dasilva equalised late for the Bees. Thomas Frank's team will now play their first home game of the season, while the rest of the month will see them face Fulham, Everton, and Crystal Palace in the Premier League, as well as Colchester United in the EFL Cup. Brentford were active in the summer transfer market, bringing in Keane Lewis-Potter, Aaron Hickey, Mikkel Damsgaard, Thomas Strakosha, ...
Post a Comment
Read more