2022-2025 MULTI-YEAR MAJOR TARIFF REVIEW FOR NATURAL GAS, ELECTRICITY AND WATER SERVICES
The Public Utilities Regulatory Commission (PURC), has concluded its regulatory process for the examination and approval of utility tariffs covering the period 2022 to 2025.
The tariff review process commenced with the receipt of proposals from the following Utility Service Providers: Volta River Authority (VRA), Ghana National Gas Company (GNGC), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company (EPC) and Ghana Water Company Limited (GWCL).
The Commission also received proposals from Ghana National Petroleum Corporation (GNPC) in respect of projected natural gas volumes and tariffs by gas supply sources.
As has been the practice, the PURC undertook extensive stakeholder consultations, which afforded the utility service providers the opportunity to explain their proposals to the general public and key interest groups such as the Association of Ghana Industries (AGI) and the Trades Union Congress (TUC).
The tariff decisions for the period 2022-2025 have been informed by rigorous analyses, intense debates, and extensive consultations. The last major review of tariffs was done in 2018 which resulted in an 17.5% reduction for residential and 30% for non-residential in electricity tariff.
Since then, key macroeconomic variables have deteriorated, particularly since 2020. These have adverse implications on the ability of utilities to keep the lights on and water flowing.
The companies requested for very astronomical increases with GWCL demanding over 300% increase in end-user tariffs. ECG and NEDCo proposed 148% and 113% increases respectively. VRA and GRIDCo proposed 37% and 48% increment respectively.
After receiving these proposals, the Commission carried out rigorous regulatory audit of processes and assets of Utility Service Providers, enabling it to adjust the Weighted Average Cost of Gas (WACOG) for power generation and end-user tariffs for electricity and water.
The details are summarized in Table-1 (for Natural Gas), Table-2 (for electricity and Table-3 for water).
Table-1 Summary of Approved Natural Gas Charges (USD/MMBtu): 2022-2025
In approving the Weighted Average Cost of Gas (WACOG) for the regulated period (2022-2025), the Commission considered, GNPC’s projected gas volumes by gas source and tariffs as well as projected gas supply volumes and tariffs by N-Gas.
For Gas Gathering, Processing and Transmission Service Charges, the Commission took into consideration financing, investment and operational costs as well as condensates and liquids revenue receipts by GNGC.
Latest Stories
-
FIFA Club World Cup 2025: Sundowns, Esperance join Al Ahly and Wydad as CAF representatives
3 hours -
CAFCL: Al Ahly set up historic final with ES Tunis
3 hours -
We didn’t sneak out 10 BVDs; they were auctioned as obsolete equipment – EC
7 hours -
King Charles to resume public duties after progress in cancer treatment
8 hours -
Arda Guler scores on first start in La Liga as Madrid beat Real Sociedad
8 hours -
Fatawu Issahaku’s Leicester City secures Premier League promotion after Leeds defeat
8 hours -
Anticipation builds as Junior Speller hosts nationwide auditions
9 hours -
Etse Sikanku: The driver’s mate conundrum
9 hours -
IMF Deputy Chief worried large chunk of Eurobonds is used to service debt
9 hours -
Otumfuo Osei Tutu II celebrates 25 years of peaceful rule on golden stool
9 hours -
We have enough funds to pay accruing benefits; we’ve never missed pension payments since 1991 – SSNIT
10 hours -
Let’s embrace shared vision and propel National Banking College – First Deputy Governor
10 hours -
Liverpool agree compensation deal with Feyenoord for Slot
11 hours -
Ejisu by-election: There’s no evidence of NPP engaging in vote-buying – Ahiagbah
11 hours -
Ejisu by-election: Independent ex-NPP MP’s campaign team warns party against dubious tactics
11 hours