PURC Announces Capital Contribution Policy to Benefit Consumers

The Public Utilities Regulatory Commission (PURC) in the Bono East Region is encouraging consumers to take advantage of the Capital Contribution Policy Allowance, designed to provide relief to those who fund utility extensions.

Joel Addai Senior, the Regional Complaints Officer, explained that the capital contribution refers to payments – either in cash or materials – made by individuals to utility companies to connect to the network. He clarified that for electricity, this typically applies to extensions exceeding two low voltage (LV) poles, and for water, it’s for connections beyond 120 meters with a pipe diameter of 63 millimetres or less.

Mr. Addai Senior revealed this information during recent public education sessions held with various District Assemblies in the region. He emphasized that the Capital Contribution Policy is a crucial mechanism allowing utility providers to extend services to customers.

He further outlined that connecting new users to the utility network involves several financial aspects: revenue generated from the connection, a deposit to cover revenue shortfalls, and direct payments from the customer. According to him, the policy ensures that expenses related to extending services beyond the utility’s planned investments are shouldered by the requesting party.

“This is because the complete cost of designing, building, installing, and starting up a new connection can often be higher than what the utility can realistically recover through standard tariffs over time,” Mr Addai Senior stated.

Kingsley Attitsogbui, the Regional Public Relations Officer, added that the guidelines aim to establish a transparent process for approving, calculating, and refunding capital contributions. He expressed the Commission’s hope that these guidelines will boost access to electricity and water services through consumer participation.

“The guidelines stipulate that customers are entitled to a 60% refund of their capital contribution,” he said. “Refunds will be issued either by cheque or credited to the customer’s utility account, as outlined in the Connection Agreement.”

Mr. Attitsogbui noted that to qualify for the 60% refund, applications must be submitted within five years of project completion.

Assembly members who attended the sessions voiced their gratitude for the Commission’s informative outreach and committed to sharing the information with their constituents.

The public education programmes benefitted the Kintampo North Municipal Assembly, the Kintampo South District Assembly, the Nkoranza North District Assembly, the Nkoranza South Municipal Assembly, the Techiman South Municipal Assembly, and the Offinso North District Assembly.

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