New increment Gov't supports realistic tariff reforms

GWCL is seeking 124% increase in its tariff from Ȼ1.78 for 120 gallons of water (5 barrels) to Ȼ4 for 120 gallons of water

  • Published:
Kwabena Donkor, Minister of Power play

Kwabena Donkor, Minister of Power

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Government has reiterated it’s position to push for the setting of a realistic and attractive tariff to stem the under-investment in the generation, transmission and distribution of utility services.

The Ghana Water Company Lim­ited (GWCL), Volta River Au­thority (VRA), Electricity Company of Ghana (ECG) and the Ghana Grid Company Limited (GRIDCo) are seeking tariff in­creases that amount to over 200%.

GWCL is seeking 124% increase in its tariff from Ȼ1.78 for 120 gallons of water (5 barrels) to Ȼ4 for 120 gallons of water.

When the increases being sought by ECG, VRA and GRIDCo are computed together; it will increase electricity tar­iff from 44,50 -pesewas per kWh to 102-99 pesewas per kWh, representing over 100% increase in tariff.

Read more: PURC to consult stakeholders over tariff review

For electricity, ECG is seeking 101% increase; VRA wants 108% in­crease while GRIDCo seeks 31.26%, and if the three are computed it will re­sult in over 100% increase in electric­ity tariff.

The Public Utilities Regulatory Commission (PURC) is to scrutinise the proposals and determine what in­creases the utility providers deserve.

VRA has proposed that its current 14.6 pesewas per kilowatt hour of power generated should be increased to 30.34 pesewas, representing 108% in­crease.

But according to the Power Minister, Kwabena Donkor, in a speech read on his behalf at the Sixth Annual General Meeting of Ghana Grid Company Limited (GRIDCo), he said the financial losses being made by the utility companies are “good money” that could have been re-directed into running the companies more efficiently.

Read more: Utility providers seek over 200% tariff increase

Dr Donkor congratulated the Board and Management of GRIDCo for providing leadership in the power sector by staying focused, despite the challenges the sector was experiencing.

GRIDCo Board Chairman, Alhaji Hudu Yahaya, said despite a very challenging year of power supply deficits, GRIDCo continue to engage in activities, which would ensure the creation of a robust and resilient National Interconnected Transmission System to serve the growing demand for electricity.

Read more: Power minister backs utility prices hikes

Alhaji Yahaya noted that the power supply deficits were occasioned by gas and crude oil shortages, plant breakdown as well as plant shut downs for maintenance, which affected the total volume of energy transmitted.

The challenges brought to the fore, the need for GRIDCo to maintain stronger partnerships with stakeholders in the power sector in order to find lasting solutions to the energy crisis.

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