1st Quarter Tariff Adjustments Take Effect
The upward tariff adjustments by the Public Utilities Regulatory Commission (PURC) for the first four months of 2023 took effect today, February 1.
This comes after the conclusion of the first quarterly tariff review.
Electricity has been increased by 29.96% whereas water has been increased by 8.3% effective February 1, 2023.
The last tariff review took effect in August 2022.
According to the PURC, tariff review is determined by underlying factors such as inflation, cedi/US dollar exchange rate, generation mix and a weighted average cost of natural gas.
These factors have changed after the last review in August, the PURC stated in a press release in January 2023.
In this review, the Commission said the projected weighted average Ghana Cedi/US Dollar exchange rate used was Ghs10.5421/USD; 42.63% inflation rate; and USD 6.0952 Average cost of gas.
“The quarterly Tariff Review Mechanism seeks to track and incorporate changes in key factors used in determining natural gas, electricity and water tariffs. The objective is to maintain the real value cost of supply of these utility services and ensure that utility companies do not under- or over- recover.
“Undercover has negative implications for the ability of the companies to supply service to consumers and has the potential of causing outages of electricity (DUMSOR) and water supply. Over recovery unnecessary overburdens consumers of electricity and water”, it explained.
Last year, the electricity tariff witnessed a 27.15% increase while water witnessed a 21.55% increase in tariff.
This was after the PURC received receipts of proposals from the Utility Service Providers: Volta River Authority (VRA), Ghana National Gas Company (GNGC), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), Enclave Power Company (EPC) and Ghana Water Company Limited (GWCL) for an upward review.
The Consumer Protection Agency opposed the current adjustment after its announcement.
The Executive Director for Agency, Nana Prempeh Okogyeabour Aduhene said his Agency was not consulted in the review and further decried the timing as wrong and the rate as high.
The Electricity Company of Ghana (ECG) has assured Ghanaians of a smooth implementation of the new tariffs.
The Company explained that an individual customer’s tariff increase will depend on his/her classification and consumption category.
“ECG has catalogued all unit consumption and the expected cost in “Reckoner” which clearly explains how the tariff is applied and billed”, a press statement from the Company ahead of the implementation date said.
The reckoner, it said, will be displayed in all District and Customer service centres across the country.
Source: opemsuo.com/Hajara Fuseini