Electricity tariffs up by 14.75%, water by 4.02% in latest review

The Public Utilities Regulatory Commission (PURC) has announced a 14.75% increase in electricity tariffs. Water tariffs will also rise by 4.02% for all consumers.

The Commission explained that this decision follows its quarterly tariff review process. This process is part of its guidelines for adjusting natural gas, electricity, and water tariffs.

Four main factors drove these adjustments: the Cedi/US dollar exchange rate, inflation, the electricity generation mix, and fuel costs. The primary fuel in question is natural gas used for electricity production.

The Commission aims to prevent both over-recovery and under-recovery of revenues. Last July, utility tariffs were increased by 4.22% for electricity and 1.18% for water.

With today’s announcement, the average Ghanaian consumer faces an 18.97% increase in electricity tariffs within a year. Water tariffs have risen by a total of 5.20%. This situation adds more strain to an already fragile economy.

The Commission noted that utility companies are experiencing revenue under-recovery, which causes significant financial issues for them. They warned that not increasing tariffs could lead to these companies going out of business.

Additionally, the statement mentioned that the adjustments could have been larger if they had chosen to recover all outstanding debts from previous quarters.