Utility Service Providers Need $320m to Cut Losses – PURC

The Acting Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr. Shafic Suleman, has disclosed that Ghana’s Utility Service Providers require $320 million in capital investment to reduce distribution and commercial losses in their networks.

Addressing Parliament on Wednesday, December 10, Dr. Suleman said the required investment could be mobilised through public-private partnerships (PPPs) to strengthen the technical and operational efficiency of the utilities.

The briefing formed part of PURC’s explanation of the recent 9.86% increase in electricity tariffs and 15.26% adjustment in water tariffs. According to Dr. Suleman, while quarterly tariff reviews are typically driven by inflation, exchange-rate fluctuations, and changes in the hydro-thermal generation mix, the current upward adjustment falls under the multi-year tariff framework, which focuses on long-term investment needs over a three-to-five-year period.

“The recent upward adjustment is a multi-year tariff and not the quarterly one,” he clarified. He added that the Commission will soon release a decision note detailing the considerations and assumptions behind the review.

Responding to concerns from Members of Parliament about inadequate stakeholder engagement, Dr. Suleman insisted that the PURC had conducted broad consultations across 10 regions, engaged with the Parliamentary Committees on Energy and Sanitation, and planned further meetings with the leadership of both the Majority and Minority Caucuses.

Despite this, several MPs expressed frustration over deteriorating services from the utility companies—citing frequent water supply interruptions, high monthly bills, and the puzzling practice of issuing bills even in areas where water does not flow consistently.

Dr. Suleman assured the House that the PURC remains committed to protecting consumers while ensuring that utility providers receive the investments necessary for improved and sustainable services.