ECG, GWCL propose increase in tariff for 2022

Source: citinewsroom

The Electricity Company of Ghana wants tariffs to be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.


The sharp proposed increment, according to ECG, is due to the gap between the actual cost recovery tariff and PURC-approved tariffs as well as the cost of completed projects.


In a similar fashion, the Ghana Water Company is also proposing an increment in its tariffs to be able to at least recover its costs.


These are contained in tariff proposals presented to the Public Utilities Regulatory Commission (PURC) by the two companies.


In the report, the two utility companies raised concerns about the continuous refusal of the Public Utilities Regulatory Commission to fix tariffs in line with the cost of production.


For them, the situation has affected their operations, and it is essential that the problem is rectified.


To achieve this, the Electricity Company of Ghana is proposing a 148% increment on distribution service charge (1) for 2022, which is the rate for electricity distribution companies to recover the cost of distribution network operations.


“The financial sustainability of the Electricity Company of Ghana is important as it impacts on the entire energy sector. With the huge investment needs facing the distribution industry over the next five years, it is expected that the proposed tariff increases would inevitably be approved to sustain efficient and reliable electricity service.”


“Overall, this tariff proposal indicates a high increase (148%) in year 2022 compared with the subsequent years’ increases of an average of 7.6%. This high increase in 2022 is largely attributable to the cost of investment projects; the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs; the continual application of the prevailing tariff (which was a 14% reduction) beyond the stipulated regulatory period (2019-2020); and the effect of
macroeconomic factors,” ECG said in its 55-page tariff proposal document forwarded to the PURC and sighted by Citi Business News.


ECG is also proposing an increment of 28.4% in 2022 for Distribution Service Charge (2) which is the rate electricity distribution companies recover distribution losses. For this set of charges, there is a proposal for an average increment of 2% from 2023 to 2026.


On the part of the Ghana Water Company Limited, management bemoaned the failure of PURC to apply an automatic tariff adjustment formula.


The GWCL argues that while the average tariff per cubic metre in 2019 was 1.27 USD, same was reduced to USD 1.13 as a result of cedi depreciation.


The GWCL argues that this has affected its ability to carry out repairs and replacements of aged and obsolete equipment and pipelines.


For the GWCL, the current domestic tariff of GH¢3.29 per cubic metre to consumers within o-5 cubic metres is less than what the poor in rural areas pay, which is about 10 cedis.


To justify its case for the increment, the Ghana Water Company Limited says it is saddled with a monthly loan payment of 7.93 million dollars which is 47.15% of its average monthly revenue.


The GWCL says it has no option but to recover the loans through tariffs.


The GWCL argues that tariff increments are largely driven by exchange rate depreciation, a paradigm shift in government economic policies.

Western Naval Command calls off search for 8 missing sailors

Source: citinewsroom

The Public Relations Officer of the 2-Garrison, Enoch Tetteh Opata, says the Western Naval Command has ended its search mission for the eight remaining sailors who have been missing since Friday, April 6th, after their fishing vessel, comforter-2, sunk offshore 46-nautical miles South of Saltpond.

The Command says it has so far rescued 16 people and recovered one dead body out of the 25 total persons on the vessel.

It says it had to call off its search due to high tide and visibility challenges.

“We are done with it, it has ended and as I speak with you, we’ve not heard anything about the eight people whether they’ve been washed ashore or not. However, we have our ears on the ground to know wherever they will be washed ashore. That is what we are monitoring. Night vision probability is a challenge now and so even in the daytime we are not able to get to the bottom or see through the sea, and it means that even in the evening it’s not worth it. You know, the tides are high due to weather conditions and all that, so it has become a challenge, so we need to halt it and monitor wherever they will be washed ashore, but as for the location we can’t tell”, he said.

When asked if the Navy is facing logistical constraints with the search, he explained to Citi News that logistics is not a concern now for the Navy.

“It has nothing to do with logistics. Like I said when the visibility is not favoring you, no matter how equipped you are, it has to do with the high tides. So we are still monitoring though because there are some portions you can’t let a diver get in due to the high tides, so we can’t risk that. We have to just withdraw and then monitor. We still have our ears on the ground and wherever they will be washed ashore, we will take note of that and then update you”, he added.

Enock Opata gave an account regarding what the Command gathered to be the possible cause of the vessel sinking.

“What happened was that they had a bumper harvest, so when they were pulling the net it was difficult and that made the vessel lift on one side, and so they prompted the Captain about that, but he insisted they continue. So whiles doing that, that side further lifted, and that caused the vessel to capsize. We have also established that high tides and strong winds also were a factor“, he explained.

According to the 2-Garrison Public Relations Officer, 25 crew members were onboard the vessel, and out of that, 19 were Ghanaians and 6 Chinese nationals.

“We were able to rescue 16 out of that number and of that 16, twelve were Ghanaians and 4 Chinese. Out of that, one died, and the one who died was the Chinese Captain of the vessel whiles those unaccounted for yet are eight, with seven of them being Ghanaians and one Chinese.”

MPs-CLOGSAG meeting: Vice Chair of LGC in Parliament confident members will resume work soon

The CLOGSAG strike action has taken its toll on Parliament, as Members of Parliament’s Local Government Committee say they are unable to access their Common Fund because Local Government staff who are supposed to help with the documentation are on strike.
This came up after a meeting between members of the Local Government Committee and leadership of CLOGSAG in Parliament on Monday, May 9, 2022.
The Vice Chairman of the Local Government Committee of Parliament, Suleman Adamu Sanid in his address to the media after the meeting expressed optimism that members of CLOGSAG will resume work soon.
He said “every MP is affected by the strike. There are so many things that we are trying to process, but we cannot. If things go through, I’m sure it will be resolved in no time. Let’s remain positive.”
Commission because they’ve been in existence for so long, and we still have strike actions here and there. We want to engage them to really understand what is still holding them and causing some of these things so that as a country we can see how to address this. If FWSC doesn’t have the necessary legislative tools, we can do that so that this perineal issues of strikes here and there will be a thing of the past.”
Meanwhile, the Member of Parliament for Odododiodoo, Nii Lante Vanderpuye says they’ll consider making a statement on the floor of the House upon resumption of Parliament to address the issue of wide disparity in salaries of public sector workers, which is the cause of most labor agitations.

Ignore supposed 20% transport fares increment – GRTCC to Ghanaians

 The Ghana Road Transport Coordinating Council (GRTCC) tells Ghanaians to disregard a 20 percent increment in transport fares at some bus terminals and calls on drivers to desist from charging any new fares until they receive such directions from their various unions.
Some commercial drivers at some bus terminals have gone ahead to charge 20% more on transport fares without approvals from the Ghana Private Road Transport Union (GPRTU).
The GRTCC in a statement signed by the General Secretary of the GRTCC, Emmanuel Ohene-Yeboah indicated that transport fares are always negotiated for and on behalf of all operators by GRTCC and the GPRTU.
The statement thus advised Ghanaians to treat with contempt any purported hikes in transport fares until the GPRTU and GRTCC give such indications.
The statement said “We want to reiterate that the GRTCC and the GPRTU have not divorced from standing protocols for fare increases. It is, therefore, unjustified for any group of persons to stampede the process to announce fare increase without reference to the standing protocols.”
“We wish to advise the public to disregard any increase and the drivers to desist from charging any new fare, as we continue with the discussion on the appropriate adjustment which will be signed by the representatives of the GRTCC and the GPRTU and communicate same to you”.
The statement further indicated that the Transport Minister will meet with the leadership of the GRTCC and GPRTU on Wednesday 11th May 2022, to begin discussion on proposals for a hike in transport fares.


see full statement below