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Utility Tariff Reduction: Ghanaians Asked to Accept With Comfort

The General Secretary for the Public Utility Workers Union, Mr. Adu Matta has proposed to the general public to welcome the electricity tariff reductions since the commission has taken the consumer and the service providers concerns to consideration before the approval.

The Public Utilities Regulatory Commission (PURC), has announced a general reduction in electricity tariffs effective March 15, 2018.

Residential customers per the new tariff cuts are to enjoy a 17.5% reduction, while non-residential customers will see tariffs cut by 30%.

Those in the mining sector have also been given a 10% tariff cut, and 25% cut for Special Load Tariff Customers (LV, MV & HV).

This was captured in a statement from PURC, signed by its Executive Secretary, Mrs. Mami Dufie Ofori, Rite Firm can confirm.

Rite FM’s reporter Rita Nkansah has engaged some resident of Somanya on the development and this was what some have to say:

“We are not going to pay even if they have reduce it by hundred percent (100%) because we deserve compensation, the dam generating the electricity is on our land.” a woman signaled.

“Somanya is not like Tema, Accra and the rest that are commercial areas, where businesses are booming, people making a very good living; they should still consider us in Somanya,” another resident appealed.

Last year, angry residents of Somanya and its environs in the Yilo Krobo and Manya Krobo  Municipalities, embarked on a massive demonstration against the ECG over high electricity bills vandalizing the company’s vehicles, smashing the Somanya EGC office and nearly injuring some workers of the company over what they described as “killer billing”.
The demonstrators made up of old men and women, but predominantly youth, wielding clubs and machetes amidst chanting war songs, besieged the Somanya office of ECG to demand explanations for the high bills.

Many homes in the Yilo Krobo and Manya Krobo areas, have not been receiving ECG bills for long periods ranging from three months to 4 years now.

Homes that have been receiving bills too, have had their bills shoot up between 500 and 1000 percent. But the ECG workers lately turn up in homes with accumulated bills and then suddenly disconnect those homes without reason.

The youth demands are that government reduces the bills or no ECG worker, will be allowed to touch any meter in the area.

The ECG had promised to respond to the issues raised by the demonstrating youth.

Meanwhile, the Public Utility Regulatory Commission (PURC), after extensive stakeholder consultations, detailed technical analysis of utility tariff proposals and consideration of inputs and concerns of consumers, has approved utility tariff reductions for various electricity customer categories, effective 15th March 2018.

The Commission received tariff proposals from the utility service providers in the electricity and water sector namely, Ghana Grid Company Limited (GRIDCO), Enclave Power Company Limited (EPCL) and the Ghana Water Company Limited (GWCL).

In line with section 17 (2) of the Public Utility Regulatory Commission ACT 1997, (Act538) the Commission investigated the cost of production of all sources of supply of electricity to the distribution utilities.

According to the press release by the Commission, the following were the major considerations taken into account in arriving at the tariff decision;

Consumer Interest, investorinterest, Economic Development ,Revenue Requirement ,Natural Gas Prices,Re-negotiation of Power Purchase Agreement (PPAs)  and Prudent and Efficient costs of the operations of the utility companies.

Effective March 15, 2018, the electricity tariff percentage reductions approved by PURC which remains the same and will be subject to review in 2019 is as follows;

Customer Category PURC Approved Average Percentage Reduction

Residential Customer                                                                     17.5%

Non- Residential Customers                                                          30%

Special LoadTariff Customers (LV, MV &HV)                         25%

Mines                                                                  10%

Source, Prince Paul Amuzu/www.ritefmonline.com/princeamuzu667@gmail.com



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