The Public Utilities Regulatory Commission (PURC) has announced an upward adjustment in electricity and water tariffs, effective July 1 to September 30, 2024.
The Commission stated that there will be a 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh); a 5.84% increase for all other residential consumers who are not part of the lifeline category bracket (31 kWh and above), as well as the non-residential category.
In a statement released on Friday, May 31, 2024, the Public Utilities Regulatory Commission (PURC) stated that consumers in the industrial category will experience an increase in electricity tariffs of 4.92%.
PURC also indicated that water tariffs will increase by 5.16% for all customer classes for the period under review.
“The Commission, in undertaking this review, also considered the competitiveness of industries and the general living conditions of the Ghanaian. Having considered all the underlying factors, the Commission wishes to announce that, there will be 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh); 5.84% increase for all other residential consumers who are not part of the lifeline category bracket (31 kWh and above) as well as the nonresidential category. The industrial category will experience an increase in electricity tariffs of 4.92%. Water Tariffs will experience an increase of 5.16% for all customer classes for the period under review.”
The commission attributed the increment to several factors including the cedi, inflation, the cost of fuel and electricity generation mix.
“These reviews have been undertaken in line with the Commission’s Quarterly Tariff Review Mechanism, which tracks and incorporates movements in key uncontrollable factors, namely the exchange rate between the US$ and the Ghana Cedi, domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas. These reviews are undertaken to maintain the real value of the tariffs, thereby keeping the utility service providers financially viable to enable them deliver on their services to consumers.”
PURC also revealed that the total revenue requirement for both the Electricity Supply Industry (ESI) and the Urban Water Supply Industry (UWSI) for the first quarter of 2024, amounted to GHS5.67 billion and GHS635.86 million, respectively.
The revenue requirement of the second quarter for the Electricity Supply Industry (ESI) and the Urban Water Supply Industry (UWSI) was projected at GHS 6.81 billion and GHS670.18 million respectively.
“Total revenue requirement for the first quarter of 2024, amounted to GHS5.67 billion. In the second quarter, the revenue requirement is projected to be GHS 6.81 billion. This will result in an increase of GHS1.14B over the first quarter revenue requirement. The Commission, however, decided to recover GHS5.90 billion of the GHS6.81 billion required for the second quarter.”
“Total revenue requirement for the water sector for the first quarter of 2024, amounted to GHS635.86 million. Revenue requirement for the second quarter of 2024 amounted to GHS670.18 million. An additional GhS34.33 million needs to be recovered in the second quarter of 2024. The water tariff has been adjusted upwards by 5.16%.”
The Public Utilities Regulatory Commission (PURC) highlighted some factors which were considered for the adjustment in Tariffs for the Second Quarter of 2024. These factors include generation mix, exchange rate, inflation, and fuel prices.
The commission further revealed the impacts of the above factors on electricity tariffs and water tariffs.
Story by: Alexander Kuuku Osei-Baidoo | univers.ug.edu.gh
