Utility service providers in the country require an estimated $320 million in fresh capital investment to reduce distribution and commercial losses across their networks, the Acting Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, has said.
He told Parliament on Wednesday that the investment could be mobilized through public–private partnerships (PPPs) to help improve operational efficiency and service delivery in the electricity and water sectors.
Dr Suleman explained that the recent 9.86 percent and 15.26 percent upward adjustments in electricity and water tariffs were not part of the quarterly tariff review mechanism.
Rather, they were components of the multi-year tariff framework, which considers long-term investment requirements of utility companies over a three-to-five-year period.
“The recent upward adjustment is a multi-year tariff and not the quarterly one,” he clarified, adding that the Commission would soon publish a decision note outlining the basis for the review.
He said quarterly tariff reviews are usually triggered by inflation trends, exchange rate movements, and shifts in Ghana’s hydro-thermal power generation mix.
The current adjustment, however, was aimed at giving utilities predictable revenue to support major investments.
Responding to questions from Members of Parliament (MPs) regarding stakeholder consultations, Dr Suleman said the PURC had conducted engagements in 10 regions, met with the Parliamentary Committees on Energy and Sanitation, and planned further discussions with the leadership of both the Majority and Minority Caucuses.
Some MPs nonetheless expressed dissatisfaction with the level of service provided by the utilities, citing persistent water supply interruptions and high monthly bills even in areas where water does not flow.
Dr Suleman assured the House that the PURC remained committed to safeguarding consumer interests while ensuring that utility companies attract the investments needed to deliver reliable and sustainable services.
