PURC to consider capital and operational expenditures in upcoming Sept. assessment

Ghanaians may soon see changes in utility tariffs. The Public Utilities Regulatory Commission (PURC) will review tariffs in September. However, it is too early to say if prices will rise, fall, or stay the same.

Dr. Eric Obutey is the Director of Research and Corporate Affairs at PURC. He explained that this review will consider both capital expenditures and operational costs. Capital expenditures include infrastructure upgrades, while operational costs are usually part of minor reviews.

Utility providers must submit proposals justifying their cost structures. PURC will analyze these submissions to decide on tariff adjustments. Until this process is complete, no decisions have been made about price changes.

Dr. Obutey stated that major reviews consider both capital and operational expenses. Minor reviews only look at operational expenses. He emphasized that the final decision depends on the analysis of submitted proposals.

He said, “After we crunch the numbers, we can inform the public.” He added that there have been times when tariffs were adjusted downward. A review does not always mean an increase; it depends on the data available.

Recently, PURC announced a 14.75% increase in electricity tariffs and a 4.02% increase for water tariffs across all consumer categories. Many consumers are unhappy with these increases due to service issues like intermittent power supply and irregular water flow.

Some Ghanaians fear any further increases would be unjustified given current service quality. Despite public frustration, PURC insists its monitoring systems hold utilities accountable for performance.

Dr. Obutey acknowledged that equipment failures are common in utility operations. Planned maintenance is often communicated ahead of time but unexpected faults may not allow for prior notice to the public.