The Public Utilities Regulatory Commission (PURC) has approved a rise in tariffs for electricity and water, which will take effect from October 1, 2024.
The decision follows the Commission’s quarterly review of various factors affecting the utility industries.The review led to a 3.02% increase in electricity tariffs and a 1.86% hike in water tariffs, affecting consumers across all categories. These adjustments are driven by factors such as the exchange rate between the US Dollar and the Ghana Cedi, domestic inflation levels, and natural gas costs.
The Commission emphasized that these increases are essential to “keep the light on and the water flowing” despite the economic volatility. The revised tariffs are aimed at cost recovery for utility services, and at the same time, they aim to ease the fiscal burden on the government in terms of subsidies for the electricity and gas sectors.
According to the PURC, “The decision was made with a focus on ensuring the financial sustainability of utility providers,” adding that the Commission “aims to maintain the real value of tariffs and ensure efficient service delivery.”
The review also showed a drop in the Weighted Average Cost of Gas (WACOG) from US$8.0422/MMBtu to US$7.8368/MMBtu, providing slight relief. However, this was counterbalanced by the 4.96% depreciation of the Ghana Cedi against the US Dollar between Q2 and Q3. Inflation, though marginally reduced, also factored into the decision, decreasing from 24.38% to 22.27%.
Additionally, the PURC called on utilities such as the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo) to meet their 98% revenue collection target to ensure operational stability. Projected revenues for Q3 include GHS 2,024.5 million for ECG, GHS 243.20 million for NEDCo, and GHS 227.40 million for the Ghana Water Company Limited (GWCL).
Source: Ghana/Starrfm.com.gh/103.5FM/Mary Asantewaa Buabeng
