The Public Utilities Regulatory Commission (PURC) says the most recent water tariff adjustment handiest covers probably the most fundamental survival wishes of Ghana Water Company Limited (GWCL).

Acting Executive Secretary of PURC, Dr Shaffic Suleman, mentioned the Commission needed to make tricky possible choices to verify Ghana Water Company Limited (GWCL) can stay running whilst protective shoppers from insufferable will increase.

He mentioned the verdict was once pushed via what he described as a strict center of attention on important inputs.

“So we did a balancing act, and that is not easy at all, and further consultations to try as much as possible. But the most important issue, as I’ve indicated, is the investment.”

He defined that the licensed 15% adjustment merely provides GWCL enough space to protected probably the most pressing pieces had to stay water flowing.

He mentioned the tariff handiest captured what was once essential to “at least sustain their current operations.”

“What the 15% did was to actually capture the most critical investments that Ghana water, for instance, will require to be able to at least sustain their current operations and possibly push them a little bit to also invest in new extensions, building new laboratories, the most important building new laboratories to be able to test the quality of water that the consumer is getting at the pump at every point in time.”

Dr Suleman mentioned the Commission didn’t approve the entirety the utilities demanded. He insisted that the PURC handiest accredited what would strengthen provider within the quick time period.

“So we added some reasonable amount of investment that will allow them to be able to improve on their services, especially the laboratories that they requested for and some pipe extensions, and most importantly, also the chemicals that they use to actually treat the water. Okay, so these are the investments that were considered.”

When requested if the placement Ghana Water faces is similar for the Electricity Company of Ghana (ECG), Dr Suleman mentioned the Commission used the similar inflexible standards for each utilities.

He mentioned ECG, too, had many capital proposals, however the PURC handiest licensed probably the most crucial ones.

“Looking at the investments that were proposed, very important investment, as I said, for this time around, what we did was to indicate to the Electricity Company of Ghana and then Ghana Water Company Limited, not only to bring investments that they would just want us to pass through the tariff, but they must indicate the outcome of the investment.”

He mentioned the Commission demanded readability from the utilities in regards to the have an effect on of each capital prior to any approval.

“Assuming they are building a BSP in this particular area. They must tell us the current load for the area and the benefit of the new investment. And most importantly, how will the new investment influence the improvement of the quality of service to the consumers?”

Dr Suleman mentioned the PURC needed to reject a number of proposals as a result of the industrial scenario and the desire to give protection to shoppers.

“So they did that, unfortunately, because of the economic conditions and the least of that, well, we couldn’t allow all those investments to pass through the tariff. Have to carefully select the most critical ones.”

He mentioned ECG’s long-term initiatives had been excluded completely.

“In fact, we have to reduce the majority of the as for the short-term investment. We didn’t consider them at all. We only look at the medium term. We took the most important short-term and critical investment.”

Only ongoing medium- to temporary works had been regarded as, he mentioned.

“The long-term investment, none of them was accepted. Medium and short-term investments. We only considered those that are ongoing, but all those that are yet to commence have also been taken, and then we focus more on the investment, and that’s what resulted in the 9.6% you see.”

Dr Suleman admitted that ECG will nonetheless fight, simply as Ghana Water will. But he insisted the Commission had no selection.

“It will not be easy for them as well. They will also be having issues as to whether more should have been allowed, but it’s a balancing act.”

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made via Readers and Contributors in this platform don’t essentially constitute the perspectives or coverage of Multimedia Group Limited.