The Public Utilities Regulatory Commission (PURC) of Ghana has announced new increases in electricity and water tariffs.
The Commission announced the increment of 3.02% for electricity and 1.86% for water.
The new increment is effective October 1, 2024.
The announced increment is part of the Commission’s routine quarterly review process, which is conducted to ensure that tariffs reflect changes in key economic indicators, such as the US Dollar/Ghana Cedi exchange rate, inflation, and the cost of natural gas.
A statement issued by the PURC indicated that the decision to increase the tariffs is driven by several factors.
The factors include a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024, as well as adjustments in inflation and gas costs, amongst others.
The statement said these factors resulted in a revenue shortfall of GH₵173.98 million in the electricity sector and GH₵12.01 million in the water sector.
“Following the quarterly tariff review, the Commission wishes to inform the public that there will be a 3.02% increment in electricity tariffs and a 1.86% increment in water tariffs for the third quarter of 2024 for all categories of customers,” it said.
It added that the increments are necessary to ensure the financial stability of utility providers, including the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and Northern Electricity Distribution Company (NEDCo), while balancing consumer protection.
The statement said that regulated utilities are expected to meet a revenue collection benchmark of 98%, which is critical to the sustainability of the energy and water sectors.
Meanwhile, the PURC says it will continue to monitor the operations of utility companies to ensure value for money and improve service quality.
By: Rainbowradioonline.com/Ghana
