Home National The Electricity Company of Ghana demands 148% tariff increment.

The Electricity Company of Ghana demands 148% tariff increment.

by Fila News Gh
Electricity Company of Ghana

A proposed tariff increment by the Electricity Company of Ghana (E.C.G) has been submitted to the Public Utilities Regulatory Commission (PURC). The increment is pegged at 148% hopeful to take effect by August 2022 to cover the period of 2019 and 2022 when approved.

General Manager, Regulatory Management of the Electricity Company of Ghana, Sylvia Noshie says the proposed 148% increase is to take care of various operational costs including metals.ie. copper and aluminum which keeps rising and are important inputs in their line of business.

She mentioned that over the past years operational costs keeps going up with high prices of distribution input unbearable for the Electricity Company of Ghana. The Electricity Company of Ghana has warned if the increment fails the company will be forced to a 200% increment demand next year.

Some analyst have said the huge investment for the next five years facing the ECG for sustained efficient and reliable electricity service will be possible if the proposed tariff increase is approved.

The Electricity Company of Ghana has subsequently proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).

On the other hand the Ghana Water Company Limited has also propose 334% increase in water tariffs. According to GWCL the cost of water production has increased due to the depreciation of the cedi. The Ghana Water Company Limited says the increment will allow them deliver satisfactory water service making them a world class utility company.

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