The Public Utilities Regulatory Commission has started processes to adjust tariffs to reflect changes in macroeconomic variables such as inflation and exchange rate.
According to Dr. Ishmael Ackah, the Executive Secretary, the Commission is aware that these same macroeconomic factors have affected customers too.
He assured stakeholders that the Commission is committed to ensuring that the utilities are solvent to continue to serve customers while at the same time, protecting the customer from inefficiencies. He explained that another important factor that is considered in the quarterly adjustment is the energy mix (the ratio of hydro to thermal and other sources).
Dr. Ackah made these comments during a media engagement at the Commission’s 25th Anniversary lecture held at the Accra International Conference Centre. He indicated that the rationale behind the QTA is to reflect changes in macroeconomic variables in the operations of utility service providers since the effects of these factors are beyond their control.
He further indicated that the implementation of the QTA will go a long way in minimising the effect of changes in the macroeconomic and market-driven variables, and associated delays in passing on such effects to consumers and utility service providers within the tariff control period.
On whether or not the commission is committed to implementing the QTA, Dr. Ackah gave a strong indication that the Commission had already started the process in line with the statutory provisions in the PURC Act 538. The VRA and the Electricity Market Overnight Panel have also submitted data on hydro generation and the projected figures up to March, 2023.
Dr. Ackah advised the utility service providers to be efficient especially in these trying times to cut costs. He also urged customers to monitor their consumption and be efficient to reduce their utility bills.