The Public Utilities Regulatory Commission has taken significant steps to enhance consumer understanding of its Capital Contribution Policy across the Country. The Capital Contribution Policy was issued in May 2024 as a requirement under Regulation 22 of the PURC (Consumer Service) Regulations, 2020 (LI 2413), to provide a framework for the orderly approval, calculation, and refund of capital contributions made by customers to access the services of utility providers.
The Ashanti regional office of the Commission engaged with residents of Abasua, Abira, Barekese, Amaadaa, Donkoto, Serebuoso, Manso Kumpese, Keniago, Manso Adubia, Dunkwa Atekyem, Ayamfuri, Kwame Prakrom, Obogu, Juaso, Adamso, Banko, Mampong, Baabeng, and Oforiwaa Nkwanta communities.
In explaining the Policy, the Commission noted that the Capital Contribution Policy is one of the means by which a utility company can extend connections to enable customers to access the utility's network services. This can be achieved through revenue from the new connection, a deposit to support that revenue until it materializes, and an upfront financial payment from the customer, known as a Capital Contribution.
The Commission indicated that a customer is entitled to a refund of sixty percent (60%) of his or her capital contribution or the amount paid to the utility company, provided that the contribution was officially approved by the utility company and the utility company subsequently connects other customers to the newly developed part of its network.
The Commission stated that the Capital Contribution ensures that costs for extensions outside the utility's investment plan are borne by the person requesting the connection. This is because the costs of designing, constructing, installing, and commissioning the new connection may exceed the amount that could reasonably be expected to be recovered over time through network tariffs. Therefore, the capital contribution is intended to limit the potential for such costs to be apportioned across the entire customer base.
The Commission, therefore, urged the public to leverage the Capital Contribution Policy to increase access to electricity and water services through user contributions.
