The Public Utilities Regulatory Commission, (PURC) has announced mixed tariff adjustments in its latest tariff review – a 1.52 Percent reduction in electricity tariffs, accompanied by a 0.34 Percent increase in water tariffs.
During the third quarter tariff adjustment, end user electricity tariffs remained unchanged for lifeline customers, industrial customers, and certain nonresidential groups.
However, non lifeline residential customers experienced a 4.22 Percent increase in their average end user electricity tariff.
In terms of water tariffs, lifeline customers saw no changes, while other water customer groups faced a 1.18 Percent increase in tariffs.
The latest adjustments, slated to be enforced from December 1, 2023, to February 29, 2024, bring relief to certain sectors while introducing new considerations for others. The PURC, in justifying these adjustments, has taken into account a spectrum of factors crucial to the economic landscape. The Ghana Cedi-US Dollar exchange rate, the Annual Inflation rate, the Price of Natural Gas, and the Electricity Generation Mix (Hydro and Thermal) were all carefully considered during this comprehensive tariff review.
As the nation heads into the final stretch of 2023, these tariff adjustments will undoubtedly spark conversations across households and boardrooms alike. The impact on disposable income, business operations, and overall economic stability will be closely monitored, making this announcement a focal point for various stakeholders.
While some may applaud the reduction in electricity tariffs as a welcome relief, concerns may arise over the increase in water tariffs, particularly for those already grappling with rising living costs.
Hoteliers in Ghana remain unhappy with the PURC for reclassifying them in its definition of Water Customer Categories from Non-residential customer to commercial customer. The PURC in response to a petition from the Ghana Hotels association early this year on unfair water tariffs countered this claim, asserting that hotels fall under the commercial classification rather than residential. But the hotels association say they were not made aware of the switch and questions why so especially when they are no using water for industrial purposes.
The PURC’s transparent consideration of economic factors, however, provides a glimpse into the complexity of decision-making in the realm of public utilities.
Source: Ghana/Starrfm.com.gh/103.5FM