PURC seeks $320 Million Investment to reduce Utility losses, explains tariff hikes

Dr. Shafic Suleman, Acting Executive Secretary of the Public Utilities Regulatory Commission (PURC), has revealed that Utility Service Providers will require a capital investment of $320 million to curb distribution and commercial losses in their networks.

He suggested that public-private partnerships (PPPs) could be leveraged to mobilize the funds and enhance the operational efficiency of the utilities.

Dr. Suleman made the disclosure while briefing Parliament on December 10, 2025, regarding the recent 9.86% and 15.26% increases in electricity and water tariffs.

He explained that while quarterly tariff reviews are influenced by factors such as inflation, exchange rate fluctuations, and the hydro-thermal generation mix, the latest adjustments were part of a multi-year tariff framework that considers the 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 considered in the review.

Responding to MPs’ concerns about limited stakeholder engagement, Dr. Suleman noted that the PURC had conducted consultations across 10 regions, engaged the Parliamentary Committees on Energy and Sanitation, and planned further discussions with the leadership of both the Majority and Minority Caucuses.

Some MPs, however, raised issues regarding the poor quality of services, citing frequent water supply interruptions and high monthly bills despite the non-flow of water in many households.

Dr. Suleman assured Parliament that the PURC remains committed to balancing the interests of consumers and service providers while ensuring sustainable investment in the utilities sector.