With effect from March 15, 2018, residential consumers of electricity will enjoy a 17.5 per cent reduction in electricity tariffs depending on their level of consumption.
Non-residential customers will also experience a 30 per cent reduction, while “special load tariff customers (those who use more power such as industries) will enjoy a 25 per cent cost reduction.
The mines will pay 10 per cent less of their current tariffs.
The approved reductions in electricity tariffs were announced by the Public Utilities Regulatory Commission (PURC) after extensive stakeholder consultations, detailed technical analysis of utility tariff proposals and consideration of inputs and concerns of customers.
The downward review of the tariff, according to the PURC, excluded water.
“The review of water tariffs require further consultations and the commission is unable to announce a decision at this time.
Water tariffs, therefore, remain the same and a decision will be taken in the coming weeks,” the commission said in a statement signed by Mrs Mami Dufie Ofori, the Executive Secretary of the PURC and issued in Accra Monday.
According to the statement, the PURC arrived at the decision to reduce the tariffs after it had received proposals from the utility service providers in the electricity and water sectors such as the Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company Limited (EPCL) and the Ghana Water Company Limited (GWCL).
In line with Section 17(2) of the Public Utilities Regulatory Commission Act 1997, (Act 538), the commission said it proceeded to investigate the cost of production of all sources of supply of electricity to the distribution utilities when it received the proposals.
“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 0were held to solicit views and inputs for the determination of the approved tariffs,” the statement said.
First tariff review On January 14, this year, President Nana Addo Dankwa Akufo-Addo announced an average of 14 per cent reduction in electricity tariffs for non-residential users across the country.
“For barbers, it is being reducedby 18 per cent; for hairdressers and beauticians, 15.7 per cent; and for tailors, 9.8 per cent," the President stated at the opening of the EighthSalon Academy of the National Association of Beauticians and Hairdressers in Accra.
While announcing the cuts in tariffs, the President also stressed that the government had taken a leap from regularising the power situation in the country and was now moving on to ensure a boost for private businesses.
Objectives of reduction
The PURC stated that the key objectives for the tariff review were to ensure efficient and equitable tariffs and also that they were relevant to the current socioeconomic environment.
It said in arriving at the decision to review electricity tariffs, it considered consumer interest, investor interest, economic development, revenue requirement, natural gas prices, renegotiation of power agreements (PPAs) and prudent and efficient costs of the operations of the utility companies.
“The commission also took into consideration the impending Private Sector Participation (PSP) Concession within the Electricity Distribution Sector,” the statement said.
The PURC indicated that the review process resulted in reductions in key utility costs and that the reductions, which were based on PURC’s 2015 gazetted electricity tariffs, were only on the energy charges and ranged from 10 per cent to 30 per cent
Unchanged tariff structure
The PURC said maximum demand and service charges remained the same as that of the 2015 gazetted tariffs.
The PURC expressed its gratitude to all stakeholders for their input in the tariff approval process and said it would continue to monitor operations of the utility service providers to ensure value for money and quality of service delivery.
“The PURC will also continue to strictly implement its Automatic Adjustment Formula (AFF) in order to address changes in operational conditions,” the statement added.
Its full decision, it said, would however, be published in the gazette in due course and will be available on its website: www.purc.com.gh.