14.75% Electricity and 4.02% Water Tariffs Take Effect
The upward adjustment in Water and electricity tariffs announced by the Public Utilities Regulatory Commission (PURC) takes effect today, May 1, 2025.
As Electricity goes up by 14.75%, water climbs to 4.02%.
According to the Commission, the Quarterly Tariff Adjustment tracks and incorporates changes in four key variables namely, the Cedi/Dollar exchange rate, inflation, electricity generation mix, and cost of fuel (mainly natural gas) in electricity tariffs.
It justified that the Review Mechanism is meant to avoid over- and under-recovery of revenues.
“Under-recovery has negative implications for the ability of the companies to supply electricity and water to consumers and it has potential to cause outages of both electricity and water supply. Over-recovery unnecessarily overburden consumers of electricity and water. This process, therefore, enables the Commission to maintain the real value of the tariffs over adjustment period.”
Currently, it said the utility companies are challenged with un-recovery.
“The combined effect of the cedi/dollar exchange rate, inflation and the payment of 50% of outstanding revenues from the previous quarters in 2024, is that the utility companies are bleeding from serious under-recovery. For the time value of money, utility companies just like other businesses, will need periodic reviews of their prices (tariffs) in order to remain operational.”
Source: opemsuo.com/Hajara Fuseini
