The Public Utilities Regulatory Commission (PURC) has indicated electricity tariffs should come down significantly once gas from the Jubilee fields becomes available for power generation. Current proposals for an upward adjustment in tariffs by the utility companies have been largely premised on the high cost of crude oil used in thermal electricity generation. This is because the Volta River Authority (VRA) says it has had to rely on thermal power as demand for electricity grows. Speaking on business analysis programme Business Trends on Joy FM Wednesday, Executive Secretary of the PURC Stephen Adu indicated electricity tariffs will be revised once the GNPC is able to make gas available from the Jubilee fields. He however said the tariffs, until then, may have to go up. “We haven’t decided on the tariff increases yet but given that gas comes in at a point in time, even if we have taken a decision on electricity..., my expectation is that we will look at those costs again and if gas is actually indeed being used then my intonation is that we will actually reduce the tariffs,” he said. VRA demands tariff rise Meanwhile, the VRA says until the gas becomes available, it will continue to push for the tariff increases. A deputy chief executive at the VRA, Kirk Koffi, told Joy Business tariff increases must be done now because it could take up to a year for gas generated from oil fields to become available to the thermal plants. He said the VRA will continue to engage the PURC and other stakeholders in discussions on the matter and ensure that consumers pay realistic prices for power. Mr Koffi however stressed the VRA will consider reducing tariffs when gas supplies to the thermal plants start. PURC consultations In a related development, the PURC is beginning a round of nationwide consultations to collate views from the public on the proposed review of utility tariffs. This is the third phase in the process for leading up to the upward adjustments proposed by the utility companies. The public hearings, which will start next week, will be held in all the regional capitals. Source: Joy Business/Myjoyonline.com/Ghana