The Public Utility Regulatory Commission (PURC) will meet with utility service providers today over their proposed tariff increments.

The Commission will negotiate with the service providers and develop adjustments it finds acceptable in the current scheme of things.

The Electricity Company of Ghana (ECG) had proposed that its tariffs be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.

The proposed sharp increment, according to ECG, is due to the gap between the actual cost recovery tariff and PURC-approved tariffs, as well as the cost of completed projects.

The Ghana Water Company Limited (GWCL) also demands a 334% increase in tariff.

The GWCL, in its proposal, said over the years that the approved tariffs have not been fully cost-reflective.

These proposals have generated widespread conversation, with many Ghanaians expressing their disapproval of same.

However, the service providers maintain that the increment is necessary to keep them afloat.

For instance, the GWCL argues that while the average tariff per cubic metre in 2019 was $1.27, the same was reduced to $1.13 due to cedi depreciation.

This reason has affected its ability to repair and replace old and obsolete equipment and pipelines.