Ghana National Gas Limited is planning to raise its tariff from US$1.10 to US$2.10 per million metric British thermal units (MMBtu) as part of a wider series of utility tariff increases currently under consideration by the Public Utilities Regulatory Commission (PURC).
This change signifies a 91 percent increase and comes in the wake of similar requests from six other state-owned utilities, which are seeking hikes ranging from 59 percent to over 200 percent.
The company asserts that this proposed increase is essential for maintaining operations, expanding infrastructure, and ensuring the long-term dependability of the natural gas transmission system.
During a stakeholder forum regarding the tariff review, Sylvester Enumi Cudjoe, the Manager of Commercial Operations at Ghana Gas, clarified that the suggested cost-reflective tariff aligns with PURC’s rate-setting guidelines and aims to recover reasonable capital investments while promoting operational efficiency.
“We have proposed to the PURC that our tariff should increase from 1.10 as it stands today to approximately 2.10. The rationale is based on the factors I have already outlined. Firstly, to be a prudent operator, one must invest in certain essential instruments,” he stated.
The proposal indicates that the adjustment encompasses capitalized expenses, sanctioned short-term investments, and revenues from natural gas liquids, which will help mitigate processing costs.
Ghana Gas highlighted that since the last significant review in 2022, it has made vital expansions in gathering and transmission infrastructure to accommodate growing demand and foster industrial development, much of which has not yet been fully reflected in the regulated asset base.
The company contends that the adjusted tariff achieves a balance between investor and public interests while positioning Ghana Gas to play a pivotal role in promoting industrialization, enhancing energy security, and aiding the nation’s shift towards cleaner fuels.
All seven tariff proposals submitted by the utilities are still pending approval from the Public Utilities Regulatory Commission (PURC) following comprehensive consultations with stakeholders.
