Ghana Water Company wants upwards adjustment in tariff
Volta River Authority wants increase in electricity tariff
Accra (Greater Accra) 08 May 2002 - The Management of Ghana Water Company Limited (GWCL) is proposing a 69 per cent upward adjustment in tariffs. A statement by the GWCL on Tuesday proposed that adjustment should take effect from 1 July 2002. This would yield a unit price of 4,810 cedis per metre cube as against the existing rate of 2,716 cedis.
Under the proposed adjustment, presented to the Public Utilities Regulatory Commission (PURC), domestic customers would pay 40 cedis for a bucket of water instead of the current rate of 18 cedis for a minimum consumption of up to 10,000 litres.
For a maximum consumption of over 10,000 litres the rate goes up to 100 cedis per a bucket instead of the existing rate of 65 cedis. For commercial and industrial consumers, the rate proposed are 127 cedis per bucket instead of 73 cedis representing an increase of 74 per cent from the existing level.
The Management of the company noted that the adjustment had been constrained by the affordability criteria under which households would not use more than 5 per cent of their total income on water.
In the industrial and commercial sectors the expectation is that the impact would appreciably be negligible, as companies expenditure on water would not exceed three per cent of the total amount.
GRi../
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Accra (Greater Accra) 08 May 2002 - The Volta River Authority (VRA) on Tuesday proposed an upward adjustment in the Bulk Supply Tariff (BST) from the existing 194 cedis per kilowatt-hour (kWh) to 478 cedis per kWh to enable it improve the quality of electricity supply to customers.
A statement from the VRA, in Accra said the proposed increase would enable the Authority to cover the full cost of generating and transmitting electricity from both hydro and thermal sources to sub-stations. The new tariff would help defray the high cost of fuel for thermal generation and the depreciation of the cedi.
It said last year only 44.9 per cent or 194 cedis per kWh was approved even though the Authority requested for 432 cedis per kWh. "Despite the much lower tariffs approved by the Public Utilities Regulatory Commission (PURC) last year VRA has gone ahead with programmes to improve the quality and security of supply throughout the country resulting in less power cuts in spite of higher load levels this year."
The statement said it would not be able to assure reliable and quality supply of power to facilitate the country's social and economic development if tariffs remained at the current levels. To improve voltage levels, a new bulk supply substation had been constructed in Accra, while new transformers had been installed in Kumasi and Cape Coast in addition to the procurement capacitator banks.
The VRA is also proceeding with construction works for grid extension to 221 towns and villages in Brong Ahafo, Northern, Upper East and Upper West regions to help ease the burden on people, who spend much more to meet their energy needs from other sources such as kerosene and candles.
GRi../
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