PURC assures no tariff hikes in Q1 of 2015

Isaac Yeboah Dec - 23 - 2014 , 20:30

Consumers of electricity and water can expect no tariff hikes from January to March of 2015, according to assurances by the regulator, the Public Utilities Regulatory Commission (PURC).

The good news is contained in a New Year message issued by the PURC in Accra Tuesday.

The Commission is however appealing to consumers to conserve electricity and water during the yuletide, while admonishing the utility providers to “create flexible, simple and accessible avenues for Consumers to complain and also receive information concerning their service.”

The Commission says it arrived at the decision not to increase tariffs after considering the movements in the variables that underpin the Automatic Adjustment Formula.

“It is clear that two of the variables (Crude Oil Price and the Exchange Rate) are pointing in a positive direction of a reduction and a stability respectively. However the price of Natural Gas from the West African Gas Pipeline has increased whilst the Generation Mix is tilting towards a dependence on Thermal Generation due to the challenges being faced with the hydrology of the Akosombo, Kpong, and Bui Hydro Electric Dams.

“It should also be noted that the Commission in arriving at a Tariff decision always looks at a smoothening impact of the Variables of the Automatic Adjustment Formula and does not consider spikes that are associated with the movements of these Variables,” the statement said.

The PURC said a demand forecast averaging 12 per cent is making the VRA and other Independent Power Producers procure more fuels to generate electricity to meet growing demand and especially at this time of the year when consumers are using a lot of cooling agents and equipment to battle the change in weather conditions.

The Automatic Adjustment Formula (AAF) is a Tariff Mechanism that seeks to track and incorporate movements in key determining factors to reflect the cost of electricity and