PURC Says $320m Investment Needed to Cut Utility Losses, Justifies Latest Tariff Adjustments
Acting Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr. Shafic Suleman, has disclosed that utility service providers will require a capital investment of about US$320 million to significantly reduce technical, distribution and commercial losses within their networks.
Briefing Parliament on Wednesday, December 10, Dr. Suleman said the investment requirement could be met through targeted public-private partnerships (PPPs), noting that improved financing would be critical to strengthening the operational efficiency of the electricity and water utilities.
He explained that the recent 9.86% increase in electricity tariffs and 15.26% adjustment for water were driven not only by quarterly review indicators—such as inflation, exchange rate movements and the hydro-thermal power generation mix—but also by the multi-year tariff framework, which accounts for utilities’ investment needs over a three-to-five-year period.
“The recent upward adjustment is a multi-year tariff and not the quarterly one,” he clarified, adding that the Commission would soon publish a decision note detailing the factors that informed the review.
Responding to concerns raised by Members of Parliament (MPs) regarding limited stakeholder engagement, Dr. Suleman maintained that the PURC had conducted consultations in 10 regions, engaged the Parliamentary Committees on Energy and Sanitation, and intended to meet the leadership of both the Majority and Minority Caucuses.
Several MPs expressed dissatisfaction with the quality of services provided by the utilities, citing persistent water supply interruptions and rising monthly bills despite non-flow of water in many communities.
Dr. Suleman assured the House that the PURC remains committed to protecting consumers while ensuring that service providers receive the investments needed to improve reliability and operational sustainability across the sector.
