Consumers of water and electricity will face higher bills starting May 3, 2025, following a new upward adjustment in tariffs. The average end-user electricity tariff will rise by 14.75%, while water tariffs will see a 4.02% increase across all categories.
In a statement, the Public Utilities Regulatory Commission (PURC) justified the move, explaining that the adjustments are in line with its quarterly tariff review mechanism, as stipulated in its rate-setting guidelines. These guidelines govern the periodic adjustment of tariffs for natural gas, electricity, and water.
The Commission cited four key variables driving the hikes: the Cedi/US dollar exchange rate, inflation, the electricity generation mix, and the cost of fuel particularly natural gas used in electricity production.
According to the PURC, the move aims to prevent both over-recovery and under-recovery of revenues by utility providers.
This marks the second major adjustment within a year. In July 2024, electricity tariffs rose by 4.22%, and water by 1.18%. The cumulative effect means that, in less than a year, the average Ghanaian consumer will have endured a total increase of 18.97% in electricity tariffs and 5.20% in water tariffs,a heavy burden amid already challenging economic conditions.
The Commission stressed that the adjustments were made with restraint, noting that the increments could have been significantly higher if it had chosen to recover 100% of arrears from previous quarters.
It further warned that persistent under-recovery of revenues is causing severe financial strain within utility companies, cautioning that failure to adjust tariffs could push some providers out of business.
Source: Ghana/StarrFM103.5FM/Benjamin Sackey
