The Public Utility Regulation Commission, PURC has said the 18.36 per cent increase in electricity tariffs for all consumer groups for the second quarter of 2023 is amongst other things to prevent prolonged power outages and the associated negative impact on livelihood and businesses.
The Director of Corporate Affairs at PURC, Dr. Eric Obutey mentioned that the adjustment will also address issues of under-recovery by the utility companies.
According to Dr Eric Obutey, the adjustment comes about due to the exchange rates, inflation as well as fuel prices.
He explained that ” the exchange rate, the generation between thermal and hydro, inflation as well as the fuel prices. The exchange rate has depreciated by 20.5 per cent, and then we have the fuel price which has gone up by 9.6 per cent. So some of these factors coupled with some under recovery which we had from the previous tariff of 25 per cent.
The net effect is that tariffs will have to go up marginally to make sure that we maintain the value of the tariffs we give.”
Meanwhile, an advocate of the Consumer Protection Agency, Kofi Kapito has expressed dissatisfaction at the constant increases in utility tariffs by the Public Utility Regulation Authority, PURC.
Reacting to the announcement, Mr Kapito said the Commission must be interested and proactive in demanding quality and reliable service from the utility companies.
“Their duty is not only to increase tariffs they are supposed to decrease it as well, but it looks like every time we hear of the PURC is about utilities going up.
It is the mandate of the PURC to see that utilities also supply adequate and sufficient uninterrupted utility delivery,” He stated.
