public utilities regulatory commission

7/29/2019 public utilities regulatory commission

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PUBLIC UTILITIES

REGULATORY

COMMISSION ACT,1997



PART I:ESTABLISHMENT AND

FUNCTIONS OF PURC

The PURC established in 16th October 1997 under Act538 is a corporate body which may sue or be sued in itscorporate name. The commission in order to perform itsduties may own or disown properties with the help StateProperty Act, 1960 or the State Lands Act, 1962.

The PURC is charged with the development and deliveryof the best quality of utility services to all consumers andpotential customers. It shall ensure fairness, equity,reliability and transparency in utility provision in the

country as well as build a credible regulatory regime toproperly cater for stakeholders concerns.



COMPOSITION OF THE COMMISSION

This is a nine member commission with its membersappointed by the President upon consultation with theCouncil of State. The members of the commission withthe exception of the Chief Executive shall serve thecommission for five years after which members may be

re-appointed or new appointment given. However beforethe end of the period a member’s appointment may beterminated due to any misconduct (absenteeism,laziness or personal resignation).

The President may appoint a new person to carry out

duties in the commission should any member, except theChief executive, be indisposed to attend to duties withintwelve months. The appointed person may in this wisecontinue years left to be served by the other member.



Every meeting of the commission shall be presided by thechairman; the commission shall determine and regulate the

procedure for such meetings. Any member of thecommission who is directly interested in any matter beingdiscussed or considered shall disclose his interest at ameeting and shall not take part in the deliberation;otherwise he shall be removed from the commission. The

commission is independent of any person or authority inthe performance of its functions. Allowances for thechairman and the members of the commission shall bepaid as determine by the president.

The commission may for the discharge of its functionsappoint committees of the commission comprisingmembers of the commission or non-members or both andassign to any such committee such of its functions as itmay determine.



RATES

• A public utility licensed under any law to provide utility

services shall maintain its equipments and property, have

periodic repairs, changes, extensions and improvements to

the service and also make reasonable efforts to provide to thepublic service that is safe, adequate, efficient, reasonable and

non-discriminatory.

• In cases where a public utility does not render adequate

services to the commission on its own or upon a complaintwill put in place appropriate measures to meet the

consumer’s satisfaction.

• Also the commission shall monitor standards of performanceestablished by the licensing authorities of public utilities for

compliance by public utilities.

•Where a public utility fails to meet any required standard of

performance , the commission in consultation with the



Except where a license given to a public utility is revoked, no

public utility shall refuse to provide its services without prior

written permission of the commission

In terms of rates, the commission shall provide guide lines onlevels of rates taking into account consumer and investor interests

as well as the cost of production of service and assurance of

financial integrity of the public utility.

Until the proposed rates by a public utility is approved by the

commission after scrutiny, it shall demand no rate for the service it

provides and in no way can it charge more than approved.

In case of a bridge in agreement between a public utility and

any institution for provision, development or expansion of the

service, the commission shall listen to both parties involved and

effect appropriate punishment to the public utility.



Upon requirement by the commission, a public utility

must give a detailed report of its finances and operations

or any other specified by the commission.

A public utility shall give to every consumer at end of an

agreed period of time with the commission, a bill showing

the sum payable for the service rendered.

A public utility may permit the joint use of its equipment by

another public utility for a reasonable compensation so long

as it does not result to damage of the equipment.

When a public utility intends to revise any existing rates or

provide new services charged, it must file with the

commission 60 days before its commencement.



PART III:COMPLAINTS AND ENFORCEMENT

OF DECISION OF THE COMMISSION• The commission investigates complaints relating to

utility services or rates charged for services rendered.

•However, complaints deemed to be trivial ,frivolous ,not

in good faith or already under investigation shall not beinvestigated.

•The commission arbitrates and determines the functions

and membership of a consumer services committee..

•If a person refuses to comply with the decision of thecommission, the high court will be employed for the

enforcement of the decision of the commission



PART IV:ADMINISTRATION AND FINANCIAL

PROVISIONS

The executive secretary, officers and other employees areappointed by the president in accordance with advice from

the Commission.

Experts and consultants are engaged by the Commission

as when it is necessary Functions of the executive secretary includes:

Being responsible for the day to day administration and

ensuring of the implementation of the decisions of the

commission



Sources of funds

government subvention

loans granted to the commission

grants and monies accrued by performing itfunctions under the act

Accountability

Records and accounts shall be approved by theauditor general

auditing is annual

financial year of the commission

same as that of the government. annual report is submitted to parliament after the

expiration of the financial year.

O C S S



PART V:OFFENCES , PENALTIES AND

MISCELLANEOUS PROVISIONS

• Any public utility that fails to adhere to any of the

sections/regulations of this Act commits an offense and liable onsummary conviction to a fine not exceeding GH¢1000 and in

default of payment the principal officer or the secretary of the

public utility shall be imprisoned for a term not exceeding 2 years

• A public utility which makes false returns commits an offenseand liable.

• Any person found guilty of interfering with any members duties

or powers conferred by the Act is liable.

•Continuing with offence shall attract not less than GH¢ 200 for each day the offense is committed and failure to pay, the principal

is liable to imprisonment for such term as determined by the court.



The commission has a duty of cooperating with any license

Authority . It shall establish an inspectorate division for the purpose of

giving effect to this Act.

The commission may appoint a chief inspector and other inspectors in carrying out functions as may be specified bythe commission.

The inspectors shall have rights to enter any premises at anyreasonable time to carry out inspections to ensurecompliance with the Act.

The commission shall keep records or particulates of allpublic utilities



Where an offense is committed by a corporate body, everydirected or officer is liable unless he is able to prove hisexercise of due diligence to secure compliance with theprovision of the Act and that offense was without his

knowledge. The commission may make regulations concerning

submission of complaints, investigations, determination of complaints and rates of service provided by the utility.

A public utility shall set procedures to handle complaints

from costumers or potential costumers. These procedure shall not be changed or modified unless in

consultation with a representation of the customers.

These procedures shall be published.

Water supplied in the community, owned, managed andoperated by the community is exempted from this Act

This Act shall amend the Ghana Water and SewerageCorporation Act, 1965(Act 310); section 2(2)(f) and section14(b) and (d) and the Volta River Development Act, 1961(Act46); section 21(4)



Interpretations

Commission- means the public utility regulatory

commission Consumer – means a person or his successor who

purchases, receives or makes use of any service providedby a public utility and does not deliver or resell the serviceor others.

Export – means the provision of the service to any country,VALCO or a free zone area in Ghana

Licensing Authority – any body or authority with power under any enactment to grant license or rights to a publicutility.

Principal utility – person engaged in the day-to-dayadministration of the public utility.

Public utility – any person engaged in the provision for afee whether directly or indirectly of supply, transmission or distribution of water or electricity.



Service- supplying or furnishing of a commodityderived directly or indirectly from the business in

which a public utility is engaged to the consumer.

Rate – payment or charge in the form of money for

any service provided by a public utility.

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