PURC sets guidelines on competitive procurement for electricity generation capacity and energy
The Public Utilities Regulatory Commission (PURC) on June 9, 2023, approved the rate setting guidelines for competitive procurement and supply of electricity generation capacity and energy for the regulated electricity market.
According to the Executive Secretary of PURC, Dr. Ishmael Ackah, the purpose of these guidelines is to promote transparency and efficiency in the procurement of additional generation capacity and to help optimize the cost of power and its impact on electricity tariffs.
The guidelines set out the principles, methodology and processes to be applied by the Commission for approval of tariffs for existing power plants and to aid in the determination of a reference capacity charge for the competitive procurements of energy supply and services contracts.
The guidelines as published by the Commission, specify the methodology for determining the cost of procuring extra generation capacity, the methodology for determining and recovering fuel supply costs and the methodology for determining the composite bulk generation charge.
It also takes into consideration, decision variables, which are necessary to trigger over and under recoveries of cost, as well as the indexation of monthly billing of capacity and energy, which is procured from the regulated electricity market.
The guidelines, according to Dr. Ackah, will be applied to utilities in the regulated market.
He noted that the Commission has outlined a number of capacity development programmes on competitive procurement for entities in the sector, which will be rolled out over time.
Source: Ghana Business
