Bimbilla residents schooled on capital contribution refunds
The Northern Regional Office of the Public Utilities Regulatory Commission (PURC) has held a sensitisation exercise in Bimbilla to educate members of the Ghana National Association of Teachers (GNAT) and residents on guidelines governing the refund of capital contributions.
The exercise was aimed at helping consumers better understand the Commission’s Capital Contribution Policy and how it applies across the country.
The policy, issued in May 2024, is in line with Regulation 22 of the PURC (Consumer Service) Regulations, 2020 (L.I. 2413).
It provides a framework for the approval, calculation and refund of capital contributions paid by customers to access utility services.
Speaking at the event last Saturday, the Northern Regional Manager of PURC, Mr Seth Kponyo, explained that the policy was one of the mechanisms used by utility providers to extend services to new customers.
He said such extensions could be financed through expected revenue from new connections and customer deposits to support that revenue until it materialised, or upfront payments made by customers, referred to as capital contributions.
Mr Kponyo noted that under the policy, customers were entitled to a refund of 60 per cent of their capital contributions, provided the payment had been duly approved by the utility company and additional customers were later connected to that section of the network.
He explained that the policy ensured that the cost of extending services beyond a utility provider’s investment plan was borne by the individual requesting the connection.
According to him, the cost of designing, constructing, installing and commissioning such extensions could exceed what utility companies might reasonably recover over time through tariffs.
He added that the policy was also intended to prevent such costs from being passed on to the wider customer base.
Mr Kponyo further stated that the guidelines covered major utility providers, including the Northern Electricity Distribution Company (NEDCo), the Electricity Company of Ghana (ECG), and Ghana Water Limited (GWL).
He expressed the commission’s expectation that the effective implementation of the policy would help expand access to electricity and water services through user contributions.
He urged residents to take the policy seriously, describing it as an opportunity for them to benefit.
A resident, Mr Abu Hussein, expressed appreciation to the commission for the engagement. He said the exercise had helped improve their understanding and assured that community members would henceforth pay closer attention to issues relating to capital contribution refunds
FROM YAHAYA NUHU NADAA, BIMBILLA
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