Increment No agreement reached on tariff adjustment - PURC

The PURC wishes to indicate that no decision concerning tariff adjustment has been agreed upon by the Commission for the 2015 Major Tariff Review.

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Nana Yaa Jantuah

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The Public Utilities Regulatory Commission (PURC) has indicated that it has not agreed any decision on tariff adjustment for the 2015 Major Tariff Review.

The Trades Union Congress (TUC) and the Association of Ghana Industries (AGI) asked utility service companies to shelve proposals to increase tariffs, and asked the PURC to compel the service providers to rather reduce their technical and operational inefficiencies first.

Read more: Utility companies must justify previous tariff increments - TUC

A statement issued by the Director of Public Relations and External Affairs of PURC, Nana Yaa Akyempim Jantuah,  in reaction to the calls, said it appeared the TUC had “taken an entrenched position without considering all the factors concerning the current load shedding situation in the country.”

Below is the full statement by the PURC.

RE; MAJOR TARIFF REVIEW 2015

The Public Utilities Regulatory Commission (PURC) has taken note of a letter from the Trades Union Congress (TUC) which was posited in the media concerning the proposed Tariff Request from the Utility Service Providers.

The PURC wishes to indicate that no decision concerning tariff adjustment has been agreed upon by the Commission for the 2015 Major Tariff Review.

See more: Africans pay too much for power - AfDB

Considering the letter from the TUC it appears the Congress has taken an entrenched position without considering all the factors concerning the current load shedding situation in the country.

In protecting the interest of the consumer, the PURC is concerned with the impact of the current load shedding situation on all categories of consumers in the formal, informal and domestic sectors of the economy. The Commission will continue to monitor the situation and offer meaningful contributions to ensure that the impact of the situation is minimised.

The Commission takes cognisance of the position of the TUC that there should be an indication of availability of adequate power in the country as a way to reduce the burden of the loadshedding on consumers.

The Commission in balancing the interest of the Consumer and the viability of the Utility Service Providers will ensure any decision concerning the 2015 Major Tariff Review will be in the interest of both the Consumer and the Utility Service Provider.

The TUC's assertion indicating that the majority of consumers who participated in the public hearings and stakeholder consultations organized by the Commission were dissatisfied with the quality of service provided, is inaccurate and not a true reflection of proceedings at these fora.

Read also: We won't pay more tariff - TUC

The approach adopted by the Commission for tariff reviews is based on normative performance parameters which does not include outstanding debts and inefficiencies of the Utility Service Provider.

The PURC also appreciates the healthy engagements that exist between the Commission and the Trades Union Congress. It is hoped that going forward this healthy relationship will continue to exist on a cordial and mutually beneficial basis.  

We wish to indicate that the Commission has responded to the concerns of the TUC stated in their letter which are relevant to our tariff review processes.

The Commission is therefore using this opportunity to appeal to all stakeholders to dispassionately examine the incidence of inadequate electricity generation plaguing the country.

Thank you

Nana Yaa Akyempim Jantuah                                                                                                                                

Director, Public Relations & External Affairs

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