Question

With specific references to the Ghana Power Sector, justify the level of involvement of the Economic Regulator (PURC) in the Wholesale Electricity Market.

Answer 1

Please refer the explanations section below.

Explanation:

With specific references to the Ghana Power Sector, justify the level of involvement of the Economic Regulator (PURC) in the Wholesale Electricity Market.

In Ghana, Public Utilities and Regulatory Commission (PUEC) is an independent regulatory agency. It regulating activities includes economic regulation, public service obligations, and service quality.

In Ghana, the electricity market is divided into 3 main sub sectors: electricity generation, transmission, and distribution.

There are two main regulatory agencies for Ghana Power Sector:

• Energy Commission
• Public Utilities and Regulatory Commission.

Both the agencies were found in 1997 with the motive to have a balance the interests of consumers and utility providers by creating and maintaining the competitive environment in the Ghana Power Sector.

Responsibilities of PURC in power sector is:

• To approve the electricity rates charged by the electricity providers and ensure the market efficient rates.
• To ensure the healthy market competition among utility providers
• To monitor the quality of service and pre-determined performance standards.
• To take to consumers rights