The Public Utilities Regulatory Commission (PURC) has established a Capital Contribution Policy to provide a framework for the orderly approval, calculation, and refund of capital contributions made by customers to access utility services.
This policy aims to ensure that customers are aware of their rights and responsibilities when requesting new connections to utility services.
What is a Capital Contribution?.
A capital contribution refers to the cost outside a utility’s budget borne by persons requesting a new connection. Utility companies extend connections to enable customers to access network services conveniently. In some cases, customers may be required to make a capital contribution to cover the cost of extending the utility service to their location.
Key Provisions of the Policy.
The Capital Contribution Policy outlines several key provisions that customers should be aware of:
– Refund Entitlement: Customers are entitled to a 60% Capital Contribution refund of the amount paid, provided the utility company officially approves the contribution and connects other customers to the newly developed part of its network.
– Connection Agreement: A connection agreement must be signed before a project commences. This agreement outlines the terms and conditions of the capital contribution and refund process.
How the Policy Works.
Let’s consider an example to illustrate how the policy works. Suppose a new housing development requires a new water line extension.
The developer or homeowners may need to make a capital contribution to the Ghana Water Limited (GWL) or the Electricity Company of Ghana (ECG) to cover the cost of that extension. In this case, the developer or homeowners would sign a connection agreement with the utility company, outlining the terms and conditions of the capital contribution and refund process.
Benefits of the Policy.
The Capital Contribution Policy provides several benefits to customers, including:
– Transparency: The policy provides transparency in the calculation and refund of capital contributions, ensuring that customers are aware of their rights and responsibilities.
– Fairness: The policy ensures that customers are treated fairly and consistently, with clear guidelines for the approval and refund of capital contributions.
– Accountability: The policy holds utility companies accountable for their actions, ensuring that they follow established procedures for approving and refunding capital contributions.
The Capital Contribution Policy is an important framework that guides the approval, calculation, and refund of capital contributions made by customers to access utility services. By understanding the key provisions of this policy, customers can ensure that they are aware of their rights and responsibilities when requesting new connections to utility services.
Whether you’re a developer, homeowner, or business owner, it’s essential to familiarize yourself with this policy to ensure a smooth and efficient process.
