Electricity, water tariffs unchanged for 1st Quarter 2015 – PURC
The Public Utilities Regulatory Commission has announced that existing Electricity and Water tariffs would remain unchanged for January-March 2015.
A statement signed by Dr Emmanuel Annan, Chairman, said the Commission using the Automatic Adjustment Formula arrived at the decision considering the movements in the variables that underpin the Formula.
The statement said while two of the Variables (Crude Oil Price and the Exchange Rate) are pointing in a positive direction of a reduction and stability respectively, the price of Natural Gas from the West African Gas Pipeline has increased.
Besides, 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,” it said.
The statement said the demand forecast(Averaging 12%) is making the VRA and other Independent Power Producers procure more fuels to generate electricity to meet the growing demand and especially at this time of the year when consumers are using a lot of cooling agents and equipments 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 water every quarter.
The following factors are considered in computing the Automatic Adjustment Formula: Ghana Cedi- Dollar Exchange Rate, Inflation, Fuel Mix (Crude Oil, Natural Gas, and Distillate fuel), and Generation Mix (hydro and thermal).
Others are Power Purchase Cost, Demand Forecast, Chemical Cost (Water) and Electricity Cost (A Major Cost Component in Water Production is Electricity).
During this period of a shortfall in Electricity Supply the Commission is continually monitoring the situation to ensure that the impact of the current situation on consumers is minimized.
Amidst the challenges being faced by consumers in the provision of Electricity and Water, the Commission reiterated its commitment to ensuring the delivery of the highest standard of Utility Services to all consumers and the public at large.
Whilst appealing to Consumers to conserve electricity and water during the yuletide season, the Commission is admonishing the Utility Service Providers to create flexible, simple and accessible avenues for Consumers to complain and also receive information concerning their service.
Source: GNA