Ghana Gas proposes tariff increase to fund expansion
By Praisebell Rosemond Larbi
The Ghana National Gas Company (Ghana Gas) has submitted a proposal to the Public Utilities Regulatory Commission (PURC), seeking approval for a 91 per cent increase in its natural gas transmission tariff.
The company is requesting an upward adjustment from the current USD1.10 per million metric British thermal units (MMBtu) to USD2.10 per MMBtu.
The proposed review comes at a time when six other state-owned utilities, including the Electricity Company of Ghana (ECG), the Volta River Authority (VRA), and the Ghana Grid Company (GRIDCo), have also submitted applications for tariff increments ranging from 59 per cent to over 200 per cent.
Speaking at a stakeholder consultation forum on the tariff review in Accra, Manager of Commercial Operations at Ghana Gas, Mr Sylvester Enumi Cudjoe, underscored the importance of the proposed adjustment.
He explained that the revision was consistent with PURC’s rate-setting guidelines and was essential for the company’s ability to recover prudent capital investments while maintaining operational efficiency.
“We have proposed to the PURC that our tariff should move from 1.10, as we have today, to about 2.10. The basis is what I have already elucidated. One, if you want to be a prudent operator, you have to invest in certain key instrumentations,” Mr Cudjoe stated.
According to Ghana Gas, the proposed adjustment takes into account capitalised expenses, approved short-term investments, and revenues from natural gas liquids, which are expected to offset a portion of processing costs.
The company further explained that since the last major tariff review in 2022, it has carried out critical expansions in gas gathering and transmission infrastructure to meet growing demand and support Ghana’s industrialisation drive.
These investments, however, have not been fully reflected in the current regulated asset base.
Management argues that the new tariff level will enable the company to sustain operations, expand infrastructure and guarantee the long-term reliability of the natural gas transmission system.
Additionally, it believes the revised rate strikes a fair balance between protecting consumer interests and ensuring the financial sustainability of Ghana Gas.
The company maintains that approval of the adjustment will allow it to consolidate its role in enhancing energy security, driving industrial growth, and supporting the country’s transition to cleaner sources of fuel.
The PURC is currently reviewing all seven tariff proposals submitted by state-owned utilities.
The Commission has assured that its final decision will be guided by extensive stakeholder consultations and a careful consideration of both investor needs and consumer welfare.
