PURC announces hike in electricity by 27.15% and water 21.55%55%

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The Public Utilities Regulatory Commission (PURC) has announced increase in end-user electricity and water tariff by 27.15% and 21.55% respectively, effective September 1.

This was contained in a press release issued by the Commission today.

The new tariff was determined after the engagement with various stakeholders in the utility sector.

The PURC in the release sighted the economic difficulties faced by consumers but said without these tariff increment, the utility providers may not meet their mandate.

“In balancing interests of the service providers and consumers, the PURC acknowledged that the very economic variables that have occasioned the steep increases proposed by the service providers also affect the consumers.

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The Commission, however, admitted that some level of increases in utility tariffs were inevitable if the nation was to avoid another power crisis and its attendant effects including job losses.

Proposed tariff increment by ECG and Ghana Water Company

This comes after utility companies including the Electricity Company of Ghana and Ghana Water Company Limited proposed an increase in tariffs by 148% and 334% respectively.

The ECG had proposed that its tariffs be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.

The proposed sharp increase, according to the ECG was due to the gap between the actual cost recovery tariff and PURC-approved tariffs as well as the cost of completed projects.

The GWCL also argued that while the average tariff per cubic metre in 2019 was 1.27 USD, the same was reduced to USD 1.13 as a result of cedi depreciation.

The GWCL said this had affected its ability to carry out repairs and replacements of aged and obsolete equipment and pipelines, hence it’s decision to increase the tariff by 334%.

 

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