The Public Utilities Regulatory Commission (PURC) has announced a 14.75% upward adjustment in the average end-user electricity tariff, along with a 4.02% increase in water tariffs across all consumer categories.
In a statement issued on the review, the commission explained that the adjustment forms part of its quarterly tariff review mechanism, as outlined in its rate-setting guidelines for the periodic adjustment of electricity, water, and natural gas tariffs.
According to the PURC, four main factors influenced the new tariffs: the cedi to US dollar exchange rate, prevailing inflation levels, the electricity generation mix, and the cost of fuel, primarily natural gas, used in power production.
The commission indicated that this move is necessary to strike a balance and prevent both over-recovery and under-recovery of revenues by utility service providers.
In July last year, PURC approved a 4.22% increase in electricity tariffs and a 1.18% rise in water tariffs. With today’s announcement, the average Ghanaian consumer has seen a cumulative increase of 18.97% in electricity tariffs and 5.20% in water charges in less than a year, further tightening household budgets amidst ongoing economic challenges.
The commission defended the latest increment by citing the current revenue under-recovery by utility companies, which it described as causing significant “bleeding” within the sector. It warned that without the tariff increases, some utility providers could face the risk of collapse.
Additionally, PURC emphasized its cautious approach in implementing the new rates, noting that the adjustments could have been steeper had it opted to recover the full debt backlog from previous quarters
