Prices of copper, aluminum have increased consistently for over two years, ECG General Manager
High prices of distribution input unbearable for Electricity Corporation, ECG
General Manager in charge of Regulatory Management of the Electricity Company of Ghana (ECG), Sylvia Noshie, has entreated Public Utilities Regulatory Commission (PURC) to as a matter of urgency approve the 148% tariff proposal laid before the commission by her outfit.
She noted that failure to do so will force the ECG to make a 200% increment demand next year.
Sylvia Noshie stated that the 148% tariff increment is to cushion the ECG to stay in business.
Speaking in an interview on 3FM Sunrise Morning Show on Tuesday, May 10, 2022, the general manager of ECG said, “Our proposal was submitted last year but unfortunately the regulator couldn’t look at it. As at last year our proposal was 130% but we are forced to review it to meet the prevailing rates in 2022 and that explains the difference.”
Sylvia Noshie stated that prices of metals such as copper and aluminum have increased consistently for over two years and the high prices of distribution inputs were having dire consequences on ECG.
She explained that the usage of metals was key in the power distribution in the country.
The Electricity Company of Ghana on May 9, 2021, demanded an increment of 148% on electricity tariffs from August 2022.
The company submitted a proposal to the Public Utilities Regulatory Commission (PURC) asking for an adjustment in electricity tariffs to cover the period between 2019 and 2022.
ECG also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC) while attributing the high increase in the Distribution Service Charges to the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs as well as the cost of completed projects.
“The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase on the current DSC1 in 2022 and an average increase of 7.6% year on year from 2023 to 2026. The high increase in the DSC1 for the year 2022 could be attributed to the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs as well as the cost of completed projects,” ECG said.
“Similarly, ECG’s proposed DSC2 shows a higher increase of 28.4% in the first year (2022) while that of the subsequent years increases by an average of 2% from 2022 to 2026”, it added.
Electricity Company of Ghana