The Public Utilities Regulatory Commission (PURC) has announced new utility tariff rates for consumers of electricity and water for the fourth quarter of 2023.
The new tariffs represents a 1.52% reduction in electricity rates whiles water tariffs increase by 0.34%.
This announcement was made in a press release on 23rd November, 2023, and signed by the PURC secretary, Dr. Ismail Ackah. The new tax rates will be effective from the 1st December, 2023 to 29th February, 2024.
The PURC explained the adjustment as part of the Commission’s Quarterly Tariff Review Mechanism; it was also explained that the change in tariff rates were due to certain economic factors such as domestic inflation rate, the exchange rate between the US$ and the Ghana Cedi, the cost of fuel from natural gas and the electricity generation mix.
“These adjustments are being carried out in line with the commission’s Quarterly tariff Review Mechanism, which tracks and incorporates movement in key uncontrollable factors, namely the exchange rate between the US dollars ($) and the Ghanaian cedis (Ghc), domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.”
According to the commission, factors such as local living conditions were analysed to determine the calculations for the new rates.
“The commission considered the competitiveness of industries and the general living conditions of the Ghanaian. After robust analysis, the commission wishes to announce a reduction of 1.52% (=1.52) in the electricity tarrif.”
“A Weighted Average Ghana Cedi US Dollar= Exchange Rate of GHS 11.9264 was used for the fourth quarter of 2023, which includes an under recovery of GHS 0.3792. The Commission used an average three month projected inflation rate of 40.43% for the fourth quarter of 2023. Thus the actual rate applied for the Quarter is 10.11. The hydro= thermal generation mix for the fourth quarter is 31.91% for hydro and 68.09% for thermal”, the PURC added in the release.
The Commission further grave its assurance in conducting its duties for the benefits of the general public.
“The Commission is grateful to all stakeholders for their support as it continues to implement Quarterly Tariff Reviews per its Rate Setting Guidelines to address changes in operational conditions, whiles holding the Utility Service Providers to strict adherence to its regulatory standards and benchmarks by continually monitoring operations of the Utility Service Providers to ensure value for money and quality of service delivery,” it added.
Kindly find below the documents including the new tariff rates.
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Story by: Hussein Habibata Maltiti | univers.ug.edu.gh
