The Public Utilities Regulatory Commission (PURC) has announced an increase in electricity and water tariffs, set to take effect from July 1 to September 30, 2024.
In a statement dated Friday, May 31, and signed by Executive Secretary Dr. Ishmael Ackah, the PURC detailed the new tariff structure.
Lifeline consumers, those using between 0-30kWh, will see a 3.45% increase in their electricity rates.
Residential consumers exceeding the lifeline threshold (31kWh and above) and all non-residential consumers will face a 5.84% hike.
The industrial sector is not exempt, with an announced increase of 4.92% in electricity tariffs.
Water tariffs will also rise by 5.16% across all customer classes for the reviewed period.
“The Public Utilities Regulatory Commission wishes to inform consumers of electricity and water that there has been a review of the existing tariffs, to take effect from July 1, 2024, to September 30, 2024,” the statement read.
Explaining the rationale behind the increments, the PURC cited several influencing factors, including the exchange rate between the US dollar and the Ghanaian cedi, domestic inflation, the electricity generation mix, and the cost of fuel, particularly natural gas.
“These reviews have been undertaken in line with the Commission’s Quarterly Tariff Review Mechanism, which tracks and incorporates movements in key uncontrollable factors. These include the exchange rate between the US$ and the Ghana Cedi, the domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas,” the Commission stated.
The primary aim of these reviews is to preserve the real value of tariffs, ensuring that utility service providers remain financially viable and capable of delivering consistent services to consumers.
The PURC also acknowledged the broader impact of these changes on the living conditions of Ghanaians and the competitiveness of local industries.
“The Commission, in undertaking this review, also considered the competitiveness of industries and the general living conditions of Ghanaians,” the statement added.
This announcement marks the latest adjustment in a series of periodic reviews by the PURC aimed at aligning tariffs with the economic realities of maintaining utility services in the country.
Story by: Joshua Kwabena Smith
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