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The Public Utilities Regulatory Commission (PURC) has justified the 4.22% increase in electricity tariffs for all non-lifeline residential customers, which will affect the average end-user.
The utility regulator approved a 4.22% and 1.18% increase in electricity tariffs for all non-lifeline residential customers and for all other categories of water consumers, respectively, in its third-quarter utility review.
Dr. Eric Kofi Obutey, the director of research and corporate affairs, explained why tariffs were increased in an interview on Eyewitness News on Citi FM.
He said that the PURC considered two things: closing the utility gap between the two streams of consumers and maintaining the real value of the tariffs.
“We considered closing the gap between customers in the residential class and customers in the industrial class because the cost of serving these two customers is different. We want to bridge that gap and ensure that the residential class sees the true cost of serving them, and the same goes for the industrial class,” he said.
“We also want to make sure that we maintain the real value of the tariff so that we don’t get into a situation whereby we have to increase tariffs arbitrarily to very high levels, which would be unpardonable to the community.”
Dr. Obutey further clarified that the idea of maintaining the existing rates for lifeline customers, as well as for industrial customers and non-residential entities like hairdressing salons, barbering shops, chop bars, tailoring and dress-making shops, cold stores, and other small- to medium-scale businesses, is to encourage industrialization to drive employment opportunities.
“The whole idea is to encourage industrialization, to encourage growth, and to encourage employment. We deem that electricity must be used productively and not just used for social events. Though it can be used for social events, it is much more beneficial if we use electricity for productive purposes. And so, the whole idea is to encourage growth, and that is the more reason why we are doing this reversal.”
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