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Electricity Tariffs PURC gazettes tariff reduction

The PURC said that publishing of the gazette of the tariff reduction is in accordance with the statutory duty imposed on the Public Utilities Regulatory Commission (‘the Commission’) under Sections 3(b) and 19 of the Public Utilities Regulatory Commission Act, 1997 (Act 538), (‘the Act’).

  • Published:

The Public Utilities and Regulatory Commission (PURC), has gazetted the recently announced electricity tariff reduction.

This follows the concerns raised by a former Energy Minister, John Jinapor on why the new tariff has not been gazetted.

In an article he said; “Electricity Consumers were informed recently that their Tariffs have been reduced significantly leading to jubilation and Celebrations.”

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“Indeed The Public Utilities Regulatory Commission (PURC), announced that effective March 15, 2018, Residential customers will enjoy a 17.5% reduction, while non-residential customers will see tariffs cut by 30%…those in the mining sector would witness a 10% tariff cut, and 25% cut for Special Load Tariff Customers (LV, MV & HV). Ten Days after the announcement, the PURC has failed to publish the Gazette confirming this reduction as required before the implementation of these adjustments.”

However, the PURC in a statement said publishing the gazette of the tariff reduction is in accordance with the statutory duty imposed on the Public Utilities Regulatory Commission (‘the Commission’) under Sections 3(b) and 19 of the Public Utilities Regulatory Commission Act, 1997 (Act 538), (‘the Act’).

Read the full statement below

PUBLIC UTILITIES REGULATORY COMMISSION (PURC) PUBLICATION OF ELECTRICITY TARIFFS

In accordance with the statutory duty imposed on the Public Utilities Regulatory Commission (‘the Commission’) under Sections 3(b) and 19 of the Public Utilities Regulatory Commission Act, 1997 (Act 538), (‘the Act’) this publication is made this 8 March 2018.

1. The Bulk Generation Charge provided in the First Schedule is the weighted average rate at which electricity distribution companies (DISCos), namely Electricity Company of Ghana Limited (ECG), Northern Electricity Distribution Company Limited (NEDCo) and Enclave Power Company Limited (EPCL) shall procure electricity from generation sources in respect of their operations in the regulated market, from 15 March 2018.

2. The Transmission Service Charges (TSC) provided in the Second Schedule are the rates applicable to the transmission of electricity by the Ghana Grid Company Limited (GRIDCo), from 15 March 2018 as follows:

a.TSC 1 is the rate for GRIDCo to recover the cost of transmission network operations. b. TSC 2 is the rate for GRIDCo to recover transmission losses.

3. A DISCo or Bulk Customer which procures electricity from an electricity generator and pays the full cost of the total electricity purchased to the electricity generator shall pay TSC 1 only to GRIDCo.

4. A DISCo or Bulk Customer which procures electricity from an electricity generator and pays the total cost of the electricity purchased excluding transmission losses shall pay both TSC 1 and TSC 2 to GRIDCo.

5. The Distribution Service Charges (DSC) provided in the Third Schedule are the rates applicable to the distribution of electricity by DISCos, from 15 March 2018 as follows:

a. DSC 1 is the rate for DISCos to recover the cost of distribution network operations. b. DSC 2 is the rate for DISCos to recover distribution losses. c. DWC is the rate payable to DISCos for the use of their networks by embedded Bulk Customers, comprising DSC 1 and DSC 2.

6. A Bulk Customer embedded in the distribution network which procures electricity directly from an electricity generator and pays the total cost of the electricity purchased including TSC 1 and TSC 2 shall pay DSC 1 only to the DISCo.

7. A Bulk Customer embedded in the distribution network which procures electricity through a DISCo shall pay to the affected DISCo, the cost of the electricity delivered at the customer’s premises in addition to TSC 1, TSC 2 and the DWC.

8. The End-User Tariffs provided in the Fourth Schedule are the rates payable by consumers in the specified categories, from 15 March 2018.

9. The tariffs are denominated in Ghana Pesewas (GHp).

10. The tariffs shall remain in force until they are reviewed by the Commission.

11. Until the next major tariff review, electricity tariffs shall be adjusted in accordance with the Automatic Adjustment (Indexation) Formula published in Gazette No. 15 of 25th February 2011.

12. The following rates approved by the Commission are revoked and replaced with the rates contained in this publication:

a. Electricity tariffs published in Gazette No. 72 of 26 July 2017; and

b. Special Rate approved for EPCL published in Gazette No. 72 of 26 July 2017 in respect of electricity supplied to Steel Manufacturing Companies.

ACRONYMS

BGC Bulk Generation Charge DISCo Electricity Distribution Company DSC Distribution Service Charge DWC Distribution Wheeling Charge EUT End User Tariff IPP Independent Power Producer kVA Kilovolt Ampere kWh Kilowatt-Hour SLT-LV Special Load Tariff – Low Voltage SLT-MV Special Load Tariff – Medium Voltage SLT-HV Special Load Tariff – High Voltage TSC Transmission Service Charge

FIRST SCHEDULE

Tariff Category Effective 15 March 2018 BGC VRA – (GHp/kWh) 28.9108 Composite BGC (VRA and IPPs) – (GHp/kWh) 42.9770

SECOND SCHEDULE Tariff Category Effective 15 March 2018 TSC 1* – (GHp/kWh) 3.0437 TSC 2 – (GHp/kWh) 1.6976

THIRD SCHEDULE Tariff Category Effective 15 March 2018 DSC 1 – (GHp/kWh) 18.6638 DSC 2 – (GHp/kWh) 12.0917 DWC – (GHp/kWh) 30.7555

FOURTH SCHEDULE Tariff Category (EUT) Effective 15 March 2018 Residential 0-50 – (GHp/kWh) 51-300 – (GHp/kWh) 301 – 600 – (GHp/kWh) 601+ – (GHp/kWh) Service Charge: Lifeline Consumers – (GHp/month) Other Residential Consumers – (GHp/month)

27.6858 55.5450 72.0866 80.0963

213.0000 633.1717 Non-Residential 0-100 – (GHp/kWh) 101-300 – (GHp/kWh) 301 – 600 – (GHp/kWh) 601+ – (GHp/kWh) Service Charge – (GHp/month)

67.7536 67.7536 72.0971 113.7598 1055.2862 SLT-LV Maximum Demand Charge – (GHp/kVA/month) Energy Charge – (GHp/kWh) Service Charge – (GHp/month)

5909.6029 75.6640 4221.1449 SLT-MV Max. Demand – (GHp/kVA/month) Energy Charge – (GHp/kWh) Service Charge – (GHp/month)

5065.3739 58.5683 5909.6029 SLT-HV Max. Demand – (GHp/kVA/month) Energy Charge – (GHp/kWh) Service Charge – (GHp/month)

5065.3739 53.8196 5909.6029 SLT-HV MINES Max. Demand – (GHp/kVA/month) Energy Charge – (GHp/kWh) Service Charge – (GHp/month)

5909.6029 102.5739 5909.6029 *Includes Regulatory Levy of GHp 0.5330/KWh

Chairman Public Utilities Regulatory Commission

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