Reject ECG’s 148% tariff adjustment proposal – IPP Chamber to PURC


The Chief Executive of the Chamber of Independent Power Producers (IPPs), Dr. Elikplim Afetorgbor has asked the Public Utilities Regulatory Commission, PURC to reject the ECG’s proposed 148 percent tariff adjustment.

He said the ECG’s desire for full-cost recovery will make the already overburdened consumers pay for the company’s inefficiencies and wastage.

Dr. Afetorgbor told GBC NEWS that the financial position of ECG was strong at the end of 2017 until the government took a decision to reduce the electricity tariff in 2018 by about 21% on average.

This decision, IPPs Chamber CEO believes, was what affected ECG’s revenue position until the company claimed it made profits last year.

He pointed out that ECG’s proposal is inconsistent with the Government of Ghana’s policy to have electricity tariffs lowered, saying as agencies of the Energy Ministry for that matter government he expects the proposal to reflect the policy focus of that government.

He said in the recent past some government officials and social commentators claimed that Ghana’s electricity tariff is one of the highest in West Africa and would not make Ghanaian industries competitive AfCTA platform and should be reduced.

He wondered why such officials are now supporting energy SOEs including ECG to increase their tariffs to enable them to sustain their operations.

He called for the subjection of issues about public utility services to a critical economic and social analysis, be very objective, and measured strategically in commenting on issues that affect the very fabric of our society.

Dr. Afetorgbor stated that sustainability of Public Utilities is not about how high or low a tariff is, but very prudent and strategic cost management practices in respect of various cost centers.

He recalled that the Energy Minister, Dr. Matthew Opoku Prempeh declared his resolve to have a tariff less or equal to 10 cents per kWh. He said approving the proposals will mean that the Minister’s target is not achievable.

He was equally unhappy about reports of ECG writing off over 600 million debts owed by its customers.

“This was a wrong decision. Managing a public utility institution is not like any other SOE. What this suggests is that ECG had enough “belly full” and can do without it. I strongly suggest ECG publishes the details of those defaulters.

Besides, you are heavily indebted and have not paid your power generators.

As at the end of the first quarter of 2022 you owed IPPs about $900 million in power supply invoices only, excluding other legitimate claims.”

He said it is wiser to continue making efforts

to retrieve those difficult debts, no matter how small per time, than writing them off.

Dr. Afetorgbor commended the PURC for the level of independence transparency and fairness in the tariff adjustment determination process so far but entreated the Commission to reject VRA and ECG’s proposals for upward tariff adjustment.

Below is the video;