PURC Increases Electricity Tariff By 29.96%, Water By 8.3%
The Public Utilities Regulatory Commission (PURC) has upwardly adjusted electricity and water tariffs.
This comes after the conclusion of the first quarterly tariff review for 2023.
Electricity will be increased by 29.96% whereas water will be increased by 8.3% effective February 1, 2023.
The last 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 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.
Source: opemsuo.com/Hajara Fuseini