Utility Service Providers Need $320 Million to Reduce Losses – PURC

Accra, Dec. 10, – Dr. Shafic Suleman, Acting Executive Secretary of the Public Utilities Regulatory Commission (PURC), has disclosed that Utility Service Providers (USPs) require a capital investment of $320 million to cut distribution and commercial losses in their networks.

Dr. Suleman suggested that the funding could be mobilised through public-private partnerships (PPPs) to enhance the operational efficiency of the utilities.

He made the disclosure while briefing Parliament on Wednesday regarding the rationale behind the recent 9.86 per cent and 15.26 per cent increases in electricity and water tariffs.

According to Dr. Suleman, while quarterly tariff reviews are influenced by factors such as inflation, exchange rate fluctuations, and the hydro-thermal generation mix, the latest adjustment was part of a multi-year tariff framework that considers the investment needs of utilities over a three-to-five-year period.

“The recent upward adjustment is a multi-year tariff, not a quarterly one,” he clarified, adding that the Commission would soon publish a decision note detailing the factors considered in the review.

Responding to concerns from Members of Parliament (MPs) over inadequate stakeholder engagement, Dr. Suleman stated that the PURC had conducted consultations in 10 regions, engaged the Parliamentary Committees on Energy and Sanitation, and planned further meetings with the leadership of both the Majority and Minority Caucuses.

Some MPs, however, raised issues regarding the poor quality of services provided by utility companies, citing frequent water supply interruptions and high monthly bills despite the non-flow of water in many households.

Dr. Suleman assured Parliament that the PURC remained committed to balancing consumer interests with those of service providers while promoting sustainable investment in the utilities sector.

GHBUSS