The Public Utilities Regulatory Commission (PURC) of Ghana has announced new increases in electricity and water tariffs by 3.02% and 1.86%, respectively, effective 1 October 2024.
This adjustment comes as part of the Commission’s routine quarterly review, aimed at ensuring tariffs reflect changes in key economic indicators, such as the US Dollar/Ghana Cedi exchange rate, inflation, and the cost of natural gas.
According to a statement released on Saturday (28 September) the increase in tariffs was necessitated by several factors.
These include a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024, adjustments in inflation, and fluctuations in gas costs. Collectively, these factors resulted in a revenue shortfall of GH₵173.98 million for the electricity sector and GH₵12.01 million for the water sector.
The PURC explained that the increments are necessary to ensure the financial stability of utility providers, including the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and the Northern Electricity Distribution Company (NEDCo).
At the same time, the Commission is committed to balancing the financial needs of these utilities with consumer protection.
“Following the quarterly tariff review, the Commission wishes to inform the public that there will be a 3.02% increment in electricity tariffs and a 1.86% increment in water tariffs for the third quarter of 2024 for all categories of customers,” the PURC statement read.
The Commission also stressed the importance of regulated utilities meeting a revenue collection benchmark of 98%, which is crucial for the sustainability of the energy and water sectors.
The statement assured consumers that the PURC would continue to monitor the operations of utility companies to ensure value for money and improve service quality.
SOURCE: DAILY MAIL GH
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