Quarterly tariff adjustments is not influenced by IMF deal— PURC
The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Ishmael Ackah, says the Quarterly Tariff Adjustment (QTA) review by the commission is not as a result of the International Monetary Fund (IMF) programme being pursued by the government.
He explained that PURC did not implement the QTA since 2021 since there was no board to sanction that exercise.
Dr Ackah said this on Thursday at a tariff education programme organised by the commission in Accra.
It was meant to educate students on the commission’s QTA Guidelines and the Net Metering Guidelines, and as well address their concerns as part of the Commission’s regional tour.
He said the IMF supported the QTA and encouraged the PURC to quarterly review electricity and water tariffs to reflect changes in macroeconomic variables such as inflation and exchange rate.
“One of the reason was that when you take the whole 2021, the commission did not do any QTA. This was because there was no board members. When we say PURC or the commission, the commission refers to the board. So, if there is no board members to oversee the affairs of the Commission, it becomes very difficult for any tariffs adjustment,” Dr Ackah stated.
He explained that tariff adjustments were determined by several factors, including the price of natural gas, exchange rate, hydro-thermal mix, and inflation.
“PURC per our guidelines and regulations, we are to do two adjustments. The major tariff adjustments and quarterly adjustments. Quarterly adjustment is looking at mainly the exchange rate, inflation rate and energy mix. Whether the IMF programme or not, per our guidelines we are to do this,” he explained.
Dr Ackah said the commission had identified nine educational institutions they would visit, and as well organised consumer clinics to engage associations, and address their concerns.
He assured stakeholders that the commission was committed to protecting customers from inefficiencies, stressing that, the implementation of the QTA would go a long way in minimising the effect of changes in the macroeconomic and market-driven variables.
Dr Ackah explained that, this would help address associated delays in passing on such effects to consumers and utility service providers within the tariff control period.