The Bono East Regional Office of the Public Utilities Regulatory Commission (PURC) has urged consumers to utilise the Capital Contribution Policy Allowance, which seeks to cushion consumers who finance extensions.
Regional Complaints Officer, Joel Addai Senior, explained that the capital contribution meant the payment in cash or materials by a person to a utility company for connection of supply to the network.
He added that for electricity distribution, it required the extension of supply beyond two low voltage (LV) poles, while water required an extension beyond a distance of 120 meters from an existing point of connection with a pipe diameter not more than 63 millimetres.
He made this revelation during the recent public education programmes with District Assemblies in the region.
Mr Addai Senior said the Capital Contribution Policy is one of the means by which a utility company extends connections to enable customers to access the utility’s network services.
The connection of new customers to a utility network is paid through a number of scenarios, including the revenue from the new connection, a deposit to support that revenue until it materialises, and an upfront financial payment from the customer.
According to him, the policy ensures that costs for extensions outside the utility’s investment plan are borne by the person requesting the connection.
This is because the costs of designing, constructing, installing, and commissioning the new connection may exceed the amount that could reasonably be expected to be recovered over time through network tariffs.
The Regional Public Relations Officer, Kingsley Attitsogbui, also added that the purpose of the guidelines is to provide a framework for the orderly approval, calculation, and refund of capital contributions paid by customers to utility companies, asserting that the Commission expects that the implementation of these guidelines will contribute to an increase in access to electricity and water services through user contributions.
He said the guidelines provide that the customer shall be entitled to a capital contribution refund of sixty per cent (60%) of the amount paid by the customer. Also, a provision that the payment of the refund shall be made by the utility either by cheque or credit to the customer’s utility account, in the proportions stated in the Connection Agreement.
The policy states that an application for a capital contribution refund shall be made within five years (5) from the completion of the project to qualify for the sixty per cent refund, he stated.
Assembly members expressed appreciation to the Commission for its insightful public education and pledged to disseminate the information to their electorates in their various communities.
The beneficiary District Assemblies included the Kintampo North Municipal Assembly, the Kintampo South District Assembly, the Nkoranza North District Assembly, and the Nkoranza South Municipal Assembly. The rest are the Techiman South Municipal Assembly and the Offinso North District Assembly.
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