"Electricity tariff to rise by 14.75%, water by 4.02% from May 3" – PURC

The Public Utilities Regulatory Commission (PURC) has announced new tariff adjustments for electricity and water, which will take effect from May 3, 2025.

In a statement signed by the Executive Secretary, Dr. Shafic Suleman, the Commission disclosed that electricity tariffs will increase by 14.75%, while water tariffs will go up by 4.02%.

This adjustment comes as part of PURC’s quarterly tariff review for the first and second quarters of 2025.

The review, according to the Commission, aims to maintain financial stability for utility providers while cushioning consumers against steep increases.

The key factors driving the new rates include the depreciation of the cedi against the US dollar, inflationary trends, fuel prices (especially natural gas), and the prevailing hydro-thermal energy mix.

PURC also cited the need to recover 50% of an outstanding GH¢976 million owed to utility companies from previous quarters in 2024 as a major factor influencing the hike.

The remaining half of the arrears will be recovered in later quarters.

The Commission reiterated that the Quarterly Tariff Review Mechanism is intended to strike a balance between under- and over-recovery of utility revenues.

It warned that under-recovery compromises service delivery, while over-recovery imposes an unnecessary burden on consumers.

The regulatory body noted that a full recovery of the outstanding revenue would have resulted in significantly higher tariff increases, but opted for a staggered approach in light of ongoing economic challenges.

“This reflects our continued effort to protect consumers while ensuring that utility companies are adequately resourced to deliver essential services,” the statement added.

The revised tariffs will be published in the official gazette and made accessible to the public soon.

Story by: Joshua Kwabena Smith