Appiah Kusi Adomako, West African Regional Director of CUTS International, a Non-Governmental Organisation (NGO) says the Public Utilities Regulatory Commission (PURC) is being one-sided in its quarterly adjustment as the review seems to be in favour of the utility firms.
The PURC has implemented a 4.22% increase in electricity tariffs for all non-lifeline residential customers, affecting the average end-user.
This decision comes after a review carried out for the third quarter of 2023 by the PURC. According to the PURC, the primary objective behind the tariff adjustment is to ensure that the real value of the cost of providing utility services is upheld.
However, in an interview on Eyewitness News on Citi FM in Accra on Tuesday, Mr. Adomako said, “The PURC has been consistent in increasing tariffs every quarter for the past seven months, and we are surprised by their actions. Of course, we understand that utility companies need money to survive and that their businesses should be profitable.”
“At the same time, PURC is looking at one side. In the past whenever the variables were trending toward the side of the consumers, PURC kept quiet and never adjusted the prices downwards because the voices of consumers were not that large enough to cause PURC to increase the tariff.”
Mr. Adomako questioned whether the regulator is now acting at the behest of the utilities to the detriment of consumers.
Meanwhile, the new tariff structure maintains the existing rates for lifeline customers, as well as for industrial customers and non-residential entities such as hairdressing salons, barber shops, chop bars, tailoring and dressmaking shops, cold stores, and other small- to medium-sized businesses.
Therefore, these segments of customers will not experience any changes or increases in their electricity tariffs.
In terms of water tariffs, lifeline customers will also benefit from a freeze on tariff adjustments, with no increase or alteration (0%) in their rates. However, for all other categories of water consumers, the PURC has approved a 1.18% increase in tariffs.
The Quarterly Tariff Review Mechanism seeks to track and incorporate changes in key factors used in determining natural gas and electricity tariffs.
“The PURC is continually grateful to all stakeholders for their support as it continues to implement quarterly tariff reviews in accordance with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity, and Water Tariffs. The Commission wishes to assure its stakeholders that it will continue to monitor the operations of the service providers to ensure quality delivery of service while balancing the interests of Consumers and Utility Service Providers,” PURC added in its statement.
The second quarter tariff was increased by 18.36%.