The utility companies, who are currently meeting the Public Utility Regulatory Commission (PURC) in a Joint Consultative forum in Accra, want tariffs increased by about 200 percent.

Speaking to Citi Business News, the Chairman of the Technical Committee of the PURC, Ishmael Egyekumhene, said the situation needs careful assessment as government has already promised a reduction in electricity tariff.

[contextly_sidebar id=”Zs97Be90KMl0nEm6B8CXTSWHqHl8V1pW”]“All of them are asking for significant increases in the tariffs. That even makes our work more difficult because already the Executive [President] has actually gone ahead to announce some tariff reduction. I’m sure you just listened to the NEDCo presentation; the figure they are asking for translates to about 200% increases in what was approved for them in 2015. So all of them are pointing upwards, they are asking for more money, but it’s our responsibility to start interrogating all the cost centres because at the end of the day, they have what they call, revenue requirements which goes into how much money they need to be able to run the systems.”

Mr. Egyekumhene said cost is a major factor in considering the total revenue requirements.

“We are looking critically at the cost right from generation to transmission and distribution. If we are only to base the analysis on exchange rate and inflation, there is every justification for the tariffs to go up,” he added.

Gov’t reduces electricity tariff by 14% for non-residential users

President Nana Addo Dankwa Akufo-Addo had on January 15, 2018, announced an average of 14% reduction in electricity tariffs for non-residential users in the country with effect from January 2018.

“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%,” he added.

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.

Gov’t can’t recommend reduction in power tariffs -Wereko-Brobby

Former Chief Executive Officer (CEO) of the Volta River Authority (VRA), Dr. Charles Wereko-Brobby, was one of the people who accused government of trying to usurp the mandate of the Public Utilities Regulatory Commission (PURC), by announcing a reduction in electricity tariffs.

According to him, government could make proposals to the regulatory body about a possible reduction in the tariffs, citing possible changes in the cost of production.

He added however that, the final say on any adjustment of the tariffs should come from the PURC devoid of any pressure from the government.

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By: Godwin A. Allotey & Pius Eduku Amihere /citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Utility service providers demand 200% increase in tariffs appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, this move will reduce the load on the current managers of the country’s electricity distribution chain and open the economy up for more investment.

He explained that producers can be selected for the regions after a bidding process.

[contextly_sidebar id=”npR1wldmJXvNEWE9uGEVKpO04meauqAk”]Mr. Casely-Hayford made the suggestion on Citi FM’s news analysis programme, The Big Issue on the back of the privatization of the Electricity Company of Ghana.

Compact II and ECG

Government had announced that it is seeking an amendment to the Power Compact II which seeks to allow private participation in the affairs of ECG.

Under the agreement, which is known as the   Power Compact II, government is expected to allow about 80 percent private sector control in ECG for the country to benefit from a cash injection of about one billion US dollars over a period of 5 years.

But speaking to Ghanaian workers at the celebration of May Day in Accra last Monday, President Nana Akufo-Addo maintained that government wants about 51% stake for Ghanaians instead.

Meanwhile, speaking on The Big Issue, Casely-Hayford was of the view that the Compact agreement would not have been necessary if his suggestion is adopted.

“It makes a lot of logical sense to me that we should have independent power producers who are given the opportunity to sell into the regions.”

He explained that the regions could be demarcated into seven with the three regions of the north being one and “sold off to people during a bidding session.”

“What I would do is to combine GRIDCo back to VRA, and get VRA to provide the energy and the distribution and give the independent power producer one single tariff. It doesn’t mean you are breaking GRIDCo up or turning it on the loose; you are just putting it back on the VRA so you could have a single tariff. When you have that then the independent power producers can then buy their power to allow for even distribution throughout the whole sector.”

Mr. Casely-Hayford further explained that the regions could be structured in a way to make them attractive to the potential power producers.

“They can then find their own sources [of power] going forward and then you also allow them the opportunity to build their own power stations. So you give them a long term offer — 20 to 30 years. And if somebody thinks he can build a two or three megawatt power station that will supply his whole region so he is not dependent on buying power from the main power producer, he should have the opportunity to do so. That is what brings value into an economy. That is what really kicks private sector in and going,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Regions need independent power producers –  Casely-Hayford appeared first on Citi 97.3 FM - Relevant Radio. Always.