ECG takeover delaying the announcement of new tariff-PURC
The Public Utilities Regulatory Commission, PURC, has attributed the delay in announcing new tariff for the year to the delayed takeover of the Electricity Company of Ghana (ECG) by the Power Distribution Services (PDS) Ghana Limited.
The PURC as expected to announce new tariff on February 1 after a public hearing on tariff adjustment which involved all stakeholders.
The PURC after taking tariff proposals from power companies such as the Northern Electricity Distribution Company (NEDCo), the Electricity Company of Ghana (ECG) and the Ghana Grid Company (GRIDCo) has still not announced the new tariff.
NEDCo called for a 40 per cent increase in their tariff, GRIDCo, on the other hand, asked for almost 100 per cent increase in new tariffs.
According to CitiBusiness, some industry watchers have however disclosed to that the new tariffs will be announced before February 15.
Read also: PURC: New tariff expected on February 1
The utility companies require about two weeks to effect the new tariffs. Implementation is not expected to until the 1st of March.
Speaking on the expectations of the Northern Electricity Distribution Company (NEDCo) ahead of the tariff announcement, the Corporate Communication Manager for NEDCo Maxwell Kotoka, said the company is confident of receiving approval for its proposed 40 per cent increase in its tariffs.
“Well we are very confident that we should be getting the 40 per cent. We raised very logical and cogent arguments to the body. Having said that we also are humble and sincere with ourselves enough to know that the power rests with PURC and not just us. And so all said and done we are keeping our fingers crossed, waiting with bated breaths for the announcement. Basic economics tells us that you don’t get all your needs, and so as and when it comes we will manage what is brought within the constraints.”
Mr. Kotoka also touched on the possible impact on their operations if they get a lower tariff approval.
“It may not make us function at the optimal level, but well when we get to the bridge we’ll cross. Like our presentation emphasized it will be important that whatever decisions are taken bares in mind the implication not only for now but also for the future. And we trust and believe sincerely that the PURC understands this even better than we do, they are capable, ready and willing to do that which is right and in the best interest of Ghana.”