The Public Utilities Regulatory Fee (PURC) has concluded the Quarterly Tariff Opinions for the second quarter of 2023 as a part of its regulatory mandate.
The evaluate has resulted within the Fee approving tariff will increase for pure gasoline and electrical energy for the second quarter of 2023.
The Quarterly Tariff Evaluate Mechanism seeks to trace and incorporate modifications in key elements utilized in figuring out pure gasoline and electrical energy tariffs.
These elements are the Chana Cedi/US Greenback alternate charge, inflation, electrical energy era combine and the weighted common price of pure gasoline (WACOG).
This evaluate has change into essential to keep up the true worth of price of provide of the utility providers and to make sure that the utility corporations don’t below or over recuperate prices. Whereas below restoration has unfavorable implications for the flexibility of the businesses to produce service to shoppers, and has the potential of inflicting outages of electrical energy, over-recovery unnecessarily overburdens shoppers of electrical energy. The Quarterly Tariff Evaluate Mechanism is supposed to handle the above.
Because the announcement of the primary quarter tariff resolution in January 2023, the important thing variables underlying the speed setting have modified. The weighted common Ghana Cedi/US Greenback alternate charge used for the primary quarter tariff evaluate was GHC10.5421 to the US Greenback. Since then, the Ghana Cedi has depreciated towards the US Greenback.
The primary quarter tariff resolution resulted in a 25% under-recovery of the alternate charge. This must be recovered with the intention to be certain that the nation doesn’t add to the already mounting debt within the power sector. The projected alternate charge for the second quarter plus the primary quarter under-recovery is GHC12.7118 to the US Greenback.
The Weighted Common Value of Gasoline (WACOG) used for the primary quarter of 2023 was USD6.0952/MMBtu.
For the second quarter, on account of a rise in worth of Nigeria-Gasoline (N-Gasoline) and different elements, the relevant WACOG is USD6.5165/MMBtu.
With respect to electrical energy era combine, the hydrothermal combine used for the second quarter is 29.01% for hydro and 70.99% for thermal, as towards 26.11% for hydro and 73.89% for thermal used for first quarter of 2023. Hydro allocation of 29.01% helped to scale back the impression of modifications within the macroeconomic variables and the WACOG on the tariff.
The online impact of the Ghana Cedi/US Greenback alternate charge, inflation, WACOG and electrical energy era combine is that the utility corporations are under-recovering and require an upward adjustment of their charges with the intention to hold the lights on.
The PURC may be very aware of the present financial circumstances, however notes that the potential for outages (dumsor) is excessive and this might have robust opposed impression on residents and companies.
This must be prevented. The PURC due to this fact sought to stability prevention of prolonged energy outages and its opposed implications on jobs and livelihoods, whereas minimising the impression of charge will increase on shoppers. The Fee will proceed to watch high quality of service to make sure shoppers get worth for cash.
The Fee due to this fact determined, after in depth deliberations and evaluation, to extend the common end-user tariff for electrical energy by 18.36% throughout board for all buyer teams.
Abstract of Authorised Charges Payable by Shoppers for Second Quarter 2023
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