The Public Utilities Regulatory Commission (PURC) has yielded to governments quest to reduce electricity tariffs against calls by the utility companies and civil society to increase tariffs.
According to a statement, issued by the PURC and published on their website, the current review is as result of reductions in key utility cost.
The reduction the PURC says, is based on its 2015 Gazetted Electricity Tariffs which are only on the energy charges and range from 10% to 30%, meanwhile the Maximum Demand and Service Charges remain the same as that of the 2015 gazetted tariffs.
As per the statement, effective March 15, 2018, Residential customers will have 17.4% reduction, Non-residential customers 30% reduction, Special Load Tariffs Customers (LV, MV &HV) will be 25% and Mines reduction will be 10%.
But PURC says tariffs structure remains the same and will be reviewed in 2019.
The statement which is signed by Mami Dufie Ofori (Mrs), Executive Secretary for the PURC said, the review takes effect from 15th March 2018 and is expected to be reviewed again in 2019, while it also took into consideration the impending Private Sector Participation (PSP) Concession within the Electricity Distribution Sector.
“In line with Section 17(2) of the Public Utilities Regulatory Commission Act 1997, (Act 538) the Commission investigated the cost of production of all sources of supply of electricity to the distribution utilities. As prescribed by law, the Commission’s decision-making process includes but is not limited to detailed technical analysis of tariff proposals and extensive stakeholder consultation, which were held to solicit views and inputs for the determination of the approved tariffs,” the statement pointed out.
Meanwhile the commission has assured the general public that it will soon announce tariff changes for the water sector as is yet to agree on tariff changes for the Ghana Water Company Limited.
Read full statement by clicking on the link below.
Gov’t reduces electricity tariff by 14% for non-residential users
The President, Nana Addo Dankwa Akufo-Addo, through his Finance Minister promised that, effective January 2018, electricity tariffs were going to come down with an average of 14% reduction in electricity tariffs for non-residential users in the country.
“From January this year, the non-residential tariff rate, which is the rate which includes all of you here, is being reduced by an average of 14%. For barbers, it is being reduced by 18%; for hairdressers and beauticians, 15.7%, and for tailors, 9.8.”
Government had earlier recommended to the Public Utilities Regulatory Commission (PURC) to reduce electricity tariffs in the country.
It promised to reduce electricity tariffs by between 13 and 21 percent for residential consumers and industry respectively.
The PURC’s meeting with stakeholders in the sector was to among other things negotiate and determine a reduction in tariffs for businesses.