As of today, October 1, 2024, consumers of electricity and water in Ghana will experience tariff increases. The Public Utilities Regulatory Commission (PURC) has approved a 3.02% hike in electricity tariffs and a 1.86% increase in water tariffs across the board for all customers.
The tariff review is aimed at ensuring regular supply of services, according to Dr. Ishmael Ackah, Executive Secretary of PURC. The changes are driven by factors such as exchange rate fluctuations, inflation rate, cost of natural gas, and electricity generation mix.
The PURC Quarterly Tariff Review Framework allows for adjustments to account for changes in key uncontrollable factors. By incorporating these changes, the commission ensures that the real values of tariffs are maintained, providing financial viability for utility service providers to deliver on their mandate.
Exchange rate fluctuations have impacted the cost of importing electricity generation equipment and fuel, while rising inflation has increased operational costs for utility service providers. Additionally, fluctuations in global natural gas prices have affected the cost of electricity generation, and changes in the mix of electricity generation sources have also impacted costs.
This move is expected to impact households and businesses across the country. The PURC has been working to restore the real value of natural gas, electricity, and water tariffs as approved by the commission.
The PURC has emphasized its commitment to ensuring efficient service provision and maintaining the financial viability of utility service providers. With the new tariffs in effect, consumers will have to adjust to the increased costs of electricity and water services.
Ruth Abla ADJORLOLO
