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

24/7 Live - Subscribe to the Pulse Newsletter!

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.

Download our mobile app today.

Android - Google Play Store

iPhone - Apple App Store

Recommended Articles

Recommended Videos




Top Articles

1 Election 2016 Ghana's presidential candidates make final push before votebullet
2 Redevelopment Mahama opens Kejetia market today [Photos]bullet
3 Fraud Alert Fake US Embassy in Ghana shut down after a decade of...bullet
4 Election 2016 Fuel stations may come under attack on Dec 7 - COPEC...bullet
5 Election 2016 Weapons allegedly seized from an NDC sympathiserbullet
6 Chaos At Bus Stations NDC, NPP hijack buses at terminals as...bullet
7 GYEEDA scandal Mahama pretends to prosecute Abuga Pele - Amidubullet
8 In Central Region Police intercept a bunch of cedi notes...bullet
9 In Eastern Region NDC DCE robbed at gunpointbullet
10 His Excellency Top 10 John Mahama quotes that will...bullet

Top Videos

1 Kwame Nkrumah Interchange Water leaks from hole in wall at new Kwame...bullet
2 Elections 2016 Nana Addo holds conference in Kumasi ahead of Dec 7...bullet
3 Obinim saga We had sex only once - Obinim victims confessbullet
4 Obinim What happen'd when we fact checked Obinim's Bible knowledgebullet
5 Video Taxi driver terrified after an encounter with a ghostbullet
6 Video IEA Presidential Townhall 2016bullet
7 Watch Kumchacha delivers Counselor Lutterodt from 'demons'bullet
8 Ghana's 1966 coup Kwesi Pratt Junior recalls the overthrow...bullet
9 Video Florence Obinim defends husband Bishop Obinimbullet
10 News On The Go NDC manifesto ready - Asiedu Nketiabullet

News