Home Business ACEP okays upward adjustment in energy tariffs

ACEP okays upward adjustment in energy tariffs


Field gamers and common Ghanaians have expressed mixed reactions to the 11.7% increase in the electrical energy tariffs announced by the Community Utilities Regulatory Commission (PURC) on Friday.

Even though the African Centre for Power Coverage (ACEP) explained the increment as very long overdue, it explained as unfair, the blanket figure of 11.7% announced by the commission for both domestic and industrial customers of electrical energy.

The Executive Director of ACEP, Mr Ben Boakye, claimed after the announcement, also explained the tariffs should have been declared early sufficient for people to get ready for the adjustment.

He stressed that the PURC should to have quoted a decrease figure for industrial people of electrical energy since the high value of electric power impacted negatively on organizations.

“We were hoping that the PURC will announce a much lessen determine of say 8 for every cent for industrial individuals and perhaps 15% for domestic individuals.

“In any part of the planet, businesses pay back considerably less for electric power as as opposed with domestic consumers for the reason that the enterprises create jobs and propel financial expansion so they need less costly and responsible energy,” he claimed.

He urged the PURC to be proactive and guarantee sustainability in the adjustment of energy tariffs.

“The PURC ought to not wait around for things to get out of hand prior to they announce increment in tariffs,” he additional.

The persons

Mr Ayine Abelyine Awonnore, a communications person, said the charge of dwelling was as well higher and, therefore, there was no require for an raise in tariffs.

 “What is disturbing is the blatant deception and pretentious conduct as well as hypocritical posture of our political leadership relying on their cloak.

“These increases only come to enable lots of electorates to see the mother nature of our political leaders,” he reported.

Mr Ansah Owusu, an Estate Supervisor, claimed the reasons behind  the increment had been effectively justified by the PURC so “we can’t complain considerably even nevertheless the news is not tasteful to the struggling masses,”

He expressed the hope that much better expert services would be furnished by the PDS in return.

For Mr Ken Gayle, he mentioned “Not, not, not. “

Previously, he claimed, a lot of Ghanaians were being struggling from the severe financial problems and considered the increment would worsen issues.

 Ms Janet Oforiwaa, a cold store operator, said even although she was not against increment in tariffs,  the 11.7% was much too high.

Mr Ayine Abelyine Awonnore explained: “For me, I have under no circumstances dreamt that price of dwelling will ever reverse or roll backwards. It is an upward phenomenon.

Paul Salami Adima questioned the justification for the improve. “ What are the justifications? Good quality of service? The 11.7% is also large, contemplating our regular of living vis-a-vis the provider remaining rendered.


The Ghana Trades Union Congress (TUC) reported its structures would fulfill upcoming week to analyze and go over the increment.

According to the Deputy Secretary Basic of the union, Mr Joshua Ansah, it would deliberate and acquire a position on the increment following week.

In January this year, for the duration of the consultation course of action in the direction of the increment of the tariff, the TUC known as for 15% reduction in electric power alternatively of an upward adjustment the utility provider providers have been demanding.

The Director of Investigate and Coverage, Mr Kwabena Otoo, at the time claimed if the government experienced produced some lousy procedures in the sector, the common Ghanaian really should not be created to bear the value via superior tariffs.

That notwithstanding, he urged the provider suppliers to acquire into thing to consider the earnings of citizens in advance of earning some of those people proposals, indicating the regular salary was GH¢800.

The new tariffs

The PURC, after a six-thirty day period hold off, yesterday introduced new tariffs for electrical energy to get outcome from July 1, 2019.

Water tariffs are predicted to be introduced later on, in accordance to a statement issued by the PURC which was signed by its Govt Secretary, Mami Dufie Ofori.

The statement claimed it took the determination soon after thinking of tariff proposals from stakeholders, such as the Volta River Authority (VRA), Ghana Grid Business (GRIDCo), Electrical power Enterprise of Ghana (ECG), Electricity Distribution Solutions Ghana Confined (PDS), Northern Electrical power Distribution Company (NEDCo) and Enclave Electrical power Corporation.

It said soon after an comprehensive technological and economical assessment of the proposals, it arrived at the figures aimed at sustaining “the monetary viability of the utility assistance providers as very well as making certain shipping of high quality assistance to buyers.”

The assertion more stated: “As a major policy shift aimed at improving the competitiveness of Ghanaian industries, the fee has eradicated the Most Demand from customers Charge on industrial consumers (Distinctive Load Tariff Buyers). It is anticipated that this policy will result in some SLT prospects dealing with savings in their in general electricity expenditures.”

It said the 2019-2020 tariff evaluate choice was the result of prudent price and effective monitoring carried out by the fee.

Track record

The PURC said the new tariff was at first intended to get result from February 1, 2019 but had to be delayed simply because of the arrival of PDS in the power sector.

From March 15, 2018, the tariffs went down, with residential shoppers benefiting from a 17.4 per cent reduction though non-residential consumers received a 30 for every cent reduction with Particular Load Tariffs consumers finding 25 for each cent and the mines, 10 per cent.

Players’ requires

In a proposal submitted to the PURC in November previous yr, the ECG, whose core mandate has now been transferred to PDS, asked for an common tariff raise of about 37 for every cent to help it to make up for the increasing charge of generation.

In January this calendar year, NEDCo proposed a 40 per cent increase over the 2015 adjustment of .3075 pesewas.

The Enclave Electrical power Organization Restricted also proposed 26 pesewas per kilowatts hour, when Ghana Water Business Limited proposed .022 pesewas raises in water tariff.

Nonetheless, it advised that the tariff would be reduced to .0014Gp if the government would help the enterprise to shell out off its remarkable loans.

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