PURC’s reasons for postponement of tariff change flimsy – Mutawakilu
The Minority Spokesperson on Mines and Energy, Adam Mutawakilu, believes the reasons given by the Public Utilities Regulatory Commission (PURC) for the postponement of electricity tariff adjustments until July 1, 2019, are not justified.
The new tariffs were set to be announced on February 1, 2019.
Mr. Mutawakilu said explanations given by PURC for the postponement, such as the relocation of Karpower and other emerging issues are not enough to delay changes in tariff, arguing that piling up the charges could affect the final price build up to be released later.
He told Citi News, “the reasons are flimsy excuses because Karpower moved to Takoradi in May and you are following the quarterly tariff adjustments, then you adjust the tariff downward in June.”
The Institute of Energy Security (IES) also expressed some concern with the delays earlier in February.
The Executive Secretary of the IES, Kwasi Anamuah Sakyi said: “Any delay in announcing the new tariffs also leads consumers sitting on tenterhooks and they need these figures so that they can also plan.”
The PURC, in a statement on Wednesday, said changes in electricity tariffs, which is expected to take effect on July 1, 2019, will be announced in due course.
The decision to maintain electricity tariffs, according to the PURC is due to “critical emerging issues in the sector which are expected to affect the final tariff setting.”
The emerging issues are related to the planned relocation of the Karpowership Plant resulting in fuel switch savings, from Heavy Fuel Oil (HFC) to Natural Gas, the commission explained.The last review, in March 2018, saw a reduction in electricity tariffs.
Residential customers per the new tariff cuts enjoyed 17.5 percent reduction, while non-residential customers saw tariffs cut by 30 percent.
–
Source: citinewsroom.