ECG tariff hike begins today… consumers to pay PURC approved 27.15% increase

The Electricity Company of Ghana (ECG) has today commenced implementation of the 27.15 per cent tariff hike approved by the Public Utilities Regulatory Commission (PURC).

Mr William Boateng, Director of Communications, ECG, in an interview with Ghanaian Times in Accra yesterday said, the 27.15 per cent represented the weighted average rate expected to be paid by allthe various classification of customers.

Residential, non-residential or commercial, low voltage special load, medium voltage special load and high voltage special load make up the various classification of electricity customers.

Each of the various customer classifications, he said, would be priced with a different rate as approved by the PURC.

He stated that, tariff increase for residential customers was 36.12 per cent while commercial or non-residential was pegged at five per cent.

Lifeline customers, mostly referred to as vulnerable customers, would have their tariff increased by 28.52 per cent, Mr Boateng added.

For low, medium and high voltage special load customers, he said their rate would be increased by 26 per cent.

He indicated that final charges for electricity consumption would include the pricing determined by the PURC, fixed charges and statutory levies including streetlight levy and VAT, in the case of commercial customers.

According to him, per the report, the PURC’s decision to skew the tariff review in favour of commercial or non-residential customers was to reverse years of subsidising electricity charges for residential customers.

This, he noted, would cushion commercial customers to be able to increase production, expand, employ and remain competitive in the face of global current economic challenges.

“Commercial customers were in the past paying more to subsidise for residential customers. That was not helpful because it increases their operational cost, making it difficult for them to contribute effectively to true growth of our economy.

“The low tariff rate is to assist the commercial entities, help them be productive and expand, be competitive,” Mr Boateng stated.

Earlier in a statement issued by the Managing Director of ECG, Samuel Dublik Mahama, ECG assured its customers and stakeholders of its commitment to ensuring a smooth implementation of the new tariff.

The PURC, on August 15 announced 27.15 per cent as the weighted average of the rate of increase.

“The Commission decided to increase the average end-use tariff for electricity by 27.15 per cent effective September 1, 2022.

These rates, in the view of the Commission, are sensitive and responsive to the positions of all stakeholders in the utility space in line with sections 3 (c) of PURC Act 1997 (Act 538), it stated.

BY CLAUDE NYARKO ADAMS

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