Energy sector think tank, African Center for Energy Policy (ACEP) is calling on Public Utilities Regulatory Commission (PURC) to announce its intentions as the July 1 date for tariff review approaches.
The PURC in a statement in February 2019 postponed the announcement of new tariffs due to “due to critical emerging issues in the sector which are expected to affect the final tariff setting.”
“Amongst others, the emerging issues are related to the planned relocation of the Karpowership Plant resulting in fuel switch savings from Heavy Fuel Oil (HFO) to Natural Gas. Secondly, reductions in the price of natural gas are anticipated due to ongoing negotiations by government. These matters are outside the purview of PURC but their outcomes are likely to have measurable impact on the Commission’s decision”, the PURC claimed.
Ahead of the July 1 timeline, Ghanaians are yet to be told whether they will be paying more or less for electricity following the tariff review in February.
ACEP believes the current situation is unacceptable because the PURC is mandated to give customers a two weeks notice before new tariffs come into effect.
“The practice has been that new tariffs are announced at least two weeks prior to effective date. This is necessary to allow stakeholders to adjust their systems and budget to accommodate the new tariff. However, today is the 19th of June (11 days shy of the proposed 1st July tariff effective date), yet the tariff has not been announced,” ACEP said.
This is contained in a statement issued by Executive Director of ACEP Ben Boakye who is of the opinion that any further delays in announcing the tariff will be unfair to the consumer who will have no room to prepare himself to bear the new tariff.
ACEP believes an immediate announcement is crucial because its projections show that tariffs are most likely to go.
“ACEP does not expect the Commission to, within few days to the effective date, ambush electricity consumers with the new tariff which holds about 90% chance of upward adjustment.”
“This is because doing so potentially distorts the plans of consumers significantly, particularly the business community whose investment decisions have been held hostage by the uncertainty in the expected tariff adjustment level. “
“ACEP’s interactions with key consumers of electricity show that anxiety is already high within the business community and expects the Commission to be fully sensitive to the realities on the ground in order not to inject unnecessary shock into plans of consumers and, by extension, the economy,” the Center stated.
Story: Sena Nombo/Radiogoldlive.com
