ECG To Return to PURC If Losses Are Made
The Managing Director of the Electricity Company of Ghana(ECG), Samuel Boakye-Appiah has given the strongest indication that the power distributing company will not hesitate to go back to the Public Utilities Regulatory Commission(PURC) if the if the implementation of the tariff reduction leads to losses.
He stated that even though the ECG was expecting an increase in the tariff, the regulator rather reduced it.
Speaking at a press conference, Mr. Boakye-Appiah maintained that the company will go to the PURC to demand an upward adjustment in the tariff if it realizes that the company is running at a loss.
“We were expecting a certain quantum of increase but we didn’t get all. We are still in the process of looking at the numbers. When we determine the numbers and, if indeed there are losses on our part, we will go back to the PURC and tell them that to sustain us in business, we need to do A,B, C, and D. Then, they will look at it and then everybody will be informed,” he hinted.
He observed that, there is some space that will allow for tariff increment through the automatic tariff adjustment formula.
Touching on how important the formula is, Mr. Boakye-Appiah maintained that it is important to look at the sustainability of the company.
Tariff reduction starts April, 1
Meanwhile, Mr. Boakye-Appiah announced that consumers of electricity should expect the reduction in tariffs from April and not from today [15th March, 2018] as announced by the Public Utilities Regulatory Commission (PURC).
This is because the ECG explains that the implementation cannot reflect on the bills of consumers due to the monthly billing cycle system it uses.
The PURC, last week announced that it has reduced electricity tariffs between 17 and 30 percent for consumers, effective tomorrow, March 15.
The reduction came with mixed reactions as some consumers felt the PURC must reduce it further.
Mr. Boakye-Appiah addressing a press conference however said the reduction will reflect next month.
He explained that “the monthly billing cycle of the prepayment metering system does not technically allow ECG to implement the review in the middle of the month”.
“Consequently, prepaid customers of ECG should note that the programming of the billing system will refund the reduction from the implementation date of the 15th to 31st March 2018. When they deposit cash or purchase electricity from 1st April 2018 onwards,” he added.
Mr. Boakye-Appiah pointed out that, the prepayment system will detect aggregate purchase for consumers on the month of March, and then compute the reduction due them, from the effective date of 15th March to 31st March.
“This will be refunded to you on your next visit to vending point”.
He stated that the average percentage reduction , which is 15.5 percent for residential, 30 percent for non-residential, 25 percent for SLT and 10 percent for the mines, effective 15th March 2018 is only on energy consumption.
“Therefore the addition of statutory levies and other fixed charges will reduce the average percentage relief announced by the PURC”, he warned.
Mr. Boakye-Appiah disclosed that, ECG has catalogued all unit consumption and expected cost in a “reckoner” which clearly explains how the tariff is calculated and billed regardless of the type of metering.
“This will be displayed at all district offices and revenue centers nationwide to guide consumers on their electricity purchase”.
Source: Citibusinessnews
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