The Public Utilities Regulatory Commission [PURC] is set to develop a quantitative quality index to be used alongside the automatic adjustment system in determining utility tariffs. The move comes on the back of the PURC’s decision not to review utility tariffs in the second quarter of this year due to what it described as the poor quality of service rendered by the utility companies. Speaking on Multi TV’s current affairs show, pm: EXPRESS, the Executive Secretary of the PURC, Stephen Adu explained that the quantitative quality index would serve as a service indicator for measuring the quality of service provided by the utility companies. The absence of the quality index has led to some utility consumers and the Consumer Protection Agency questioning the basis for the regular tariff adjustments when utility providers continue to render poor quality service. Explaining the reason behind the recent increase in tariffs for water and electricity, the PURC Boss said even though the quality of service offered by the utility companies has not improved one hundred percent, there have been some improvements which necessitated the tariff review. He cited a reduction in the duration of power outages in both rural and urban areas as an example of the improvements in the electricity sector. Mr. Adu noted that the Commission consults widely with government and industry before announcing any tariff adjustments. According to him, the Commission operates within government’s policy to execute its mandate of ensuring that Ghanaians receive quality service from the utility companies at a good cost. He concurred that although the PURC is an independent autonomous body, it still has to consult government because it is the sole owner of utilities in the country and that he said accounts for the controversy over the Commission’s independence. On whether government was consulted before the announcement of the new tariffs, Mr. Adu could not give a forthright answer except to say “I cannot tell you that but government has to see the figures and appreciate it”. The Public Utilities Regulatory Commission on Monday August 29, 2011 announced a 7 percent increase in electricity tariffs and a 6.72 percent in water tariffs. The new tariffs are expected to take effect from Thursday September 1 through to November 30 2011. The new adjustment according to officials at the PURC was in part due to the increasing trends in the world market price of crude oil. The level of the availability of natural gas for generating electricity through thermal sources was inadequate and this also played a role in the increase, Mr. Adu explained. He expressed the hope that the appreciable level of investment being undertaken by the utility companies would translate into improved service delivery soon. He said customers who are billed with the new tariffs before the effective date can seek redress from the Commission since it is expected to take effect from September 1. Mr. Adu further said that the gas situation in the country will improve because ”more gas means lowered tariffs”.