The Public Utilities Regulatory Commission (PURC) has approved the increase in electricity tariff by 11.17 percent with effect from July 1.
The Commission explained in a press statement on Friday that the increase was for the recovery of total electricity revenue requirement for the regulated electricity market.
“In taking the above decisions, the Commission received and considered tariff proposals from stakeholders, including the following utility service providers in the electricity and water sectors, Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC).
“In line with the Commission’s regulatory oversight mandate, extensive technical and financial analyses of the proposals were undertaken. The key objective of the tariff review was to sustain the financial viability of utility service providers as well as ensuring delivery of quality service to consumers,” the PURC said.
According to the Commission, as a major policy shift aimed at enhancing the competitiveness of Ghanaian industries, it has eliminated the Maximum Demand Charge on industrial customers (Special Load Tariff-SLT Customers).
It is expected that this policy will result in some 5LT customers experiencing savings in their overall electricity bills.
“This 2019-2020 Major Tariff Review Decision is the outcome of prudent cost review and effective monitoring undertaken by the Commission,” the statement added.
Meanwhile, the general public has reacted angrily, following the announcement claiming that it would negatively affect the public sector works and the ordinary man on the street whose income has already whittled down as a result of high prices of fuel.
DAP/GIK/APA.