In a bid to improve the quality of service in power supply for its customers, the Electricity Company of Ghana (ECG) has defended the need to increase tariffs by 148 per cent.
Speaking exclusively in an interview with Macall Mensah Host of the Mid-Morning Lounge on Beach FM, the Western Regional Communication Officer of ECG, Ben Quarcoe disclosed that the increment in tariffs would help the Company deliver better services to their customers.
It could be recalled that the Electricity Company of Ghana requested tariff increases by 148 per cent for 2022 and with 7.6 per cent average adjustments between the periods of 2022 to 2027.
“ If we get this increase, our provision of service to our clients would be enhanced. It is not a one month or a year tariff, but a multi year tariff which will run from 2022 to 2027. The last time, there was a tariff review was in 2018
If the forex rate remains the same, if the global market price for transformers, copper, aluminium and all that remains stable, this is what we need to run the Company effectively to provide that we have promised Ghanaians”
He explained that the 148 per cent increment would be charged on the amount of money a client spends on power, that he describe as “what the ECG” has control over.
According to ECG, this is due to the gap between the actual cost recovery tariff and PURC- approved tariffs as well as for the cost of completed projects.
Mr Quarcoe said, the ECG does not work in isolation but with other industry players like the Ghana Grid Company (GRIDCo), and Volta River Authority (VRA) amongst others hence the maintenance of machines require sufficient funds to enhance the supply of electricity flow into homes of customers.
He bewailed the Russia – Ukraine bit which has made prices of raw materials used in their operations increase. Raw materials such as copper, aluminium, transformers, fuel and other necessary materials have been increased on the global market, thus the plea to increase the tariffs.
“ From 2018 up till now, if you check the statistics the dollar was somewhere around 4 cedis and everything was bought in USD. Import duties, fuel prices have all increase. Recently, prices of aluminium and copper has been affected as a result of the Russia – Ukraine war.” Mr Quarcoe added.
