The Chairman of the Technical Committee of the Public Utility and Regulatory Commission (PURC), Hon. Moses Asaga, has stated that the current increment in tariffs “reflects the fact that government is a caring government.”
He revealed that the Commission took into consideration the current economic situation in the country before releasing the new tariff increments.
“There was this speculation that we were going to increase the electricity tariffs by 150%. In actual fact, when we were doing the stakeholders meeting, they were asking for about 166%, so for PURC to come to 78.9%, it means that we have taken into consideration the economic situation...to make sure that there is a win-win situation.”
The PURC on Wednesday announced that consumers will now have to pay up to 52% more for water and 78.9% more for electricity from October 1, 2013.
The announcement has since caused public outrage, but in an interview on Eyewitness News on Wednesday; Mr. Asaga stated that government is willing to support the utility companies in the country because “what we [government] have given them so far will be able to cover for their fuel cost and also their fixed cost.”
The former Member of Parliament indicated that in case of a deficit, “government will be willing to support the deficit. This will normally come in the form of supporting VRA [Volta River Authority] with what we call light crude oil cargo shipment for them to use for their thermal plants.”
According to him, the tariff adjustment was made taking into consideration the “general conditions, the requirement to be able to produce 1 kilowatt hour of electricity, and that was the way we derived our figures,” adding that once the increment takes effect, “the automatic adjustment formula will then kick in and this is normally on a quarterly basis.”
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