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PURC increases electricity and water tariffs effective February 1

3 weeks ago
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PURC to announce approved tariffs July 1
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The Public Utilities and Regulatory Commission has increased electricity and water tariffs by 29.96% and 8.3% respectively.

The new rates take effect from February 1, 2023.

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This follows the conclusion of its regulatory process for the quarterly adjustment of utility tariffs covering the first quarter of 2023. The Commission said the process is in conformity with the Quarterly Tariff Review Mechanism and Guidelines as communicated in the Commission’s August, 2022 major tariff review decision.

This was contained in a press release issued in Accra on Monday.

According to the statement signed by the Executive Secretary, Dr. Ishmael Ackah, the PURC approved the new tariffs very mindful of the current economic circumstances.

It noted however, that the potential for a return to the days of erratic power supply was also given due consideration as it would be “catastrophic for Ghana”.

“The Commission therefore decided to increase the average end-user tariff for electricity by 29.96% across the board for all consumer groups. The average end-user tarrif for water has also been increased by 8.3%. The Commission however approved varying rates of adjustments including some reductions for selected industrial and commercial consumers as part of the ongoing restructuring of the existing water rate structure,” the press release explained.

PURC increases electricity and water tariffs effective February 1

The PURC further stated that, “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 of cost of supply of these utility services and ensure that utility companies do not under- or over-recover.

Under-recovery 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 unnecessarily overburdens consumers of electricity and water. The Quarterly Tariff Review Mechanism is meant to ensure that none of these happens.”

“The PURC is grateful to all stakeholders for their support as it continues to implement quarterly tariff reviews in accordance with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity and Water tariffs. In doing so, the Commission will continue to equitably balance the interests of the utility service and consumers and hold service providers to strict adherence to regulatory standards and benchmarks,” the PURC assured.

Tags: Public Utilities Regulatory Commission (PURC)
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