The Public Utilities and Regulatory Commission raised the prices for water and electricity by 8.3% and 29.96%, respectively.
Beginning on February 1, 2023, the revised rates will be in effect.
This comes after the completion of its regulatory process for the utility tariffs’ quarterly adjustment for the first quarter of 2023. According to the Commission, the procedure complies with the Quarterly Tariff Review Mechanism and Guidelines as stated in the Commission’s major tariff review decision from August 2022.
This was said in a press release that was released on Monday in Accra.
The new tariffs were authorized by the PURC after careful consideration of the current economic situation, according to a statement made by the Executive Secretary, Dr. Ishmael Ackah.
The possibility of a return to the days of unpredictable electricity supply, it was said, was also taken into consideration because it would be “catastrophic for Ghana.”
In light of this, the Commission made the decision to raise the average end-user tariff for energy by 29.96% for all consumer groups. The average end-user water tariff has also gone up by 8.3%. However, as part of the ongoing reorganization of the current water rate system, the Commission approved a range of adjustment rates, including some reductions for some industrial and commercial consumers, according to the press release.
“The Quarterly Tariff Review Mechanism strives to track and incorporate changes in important parameters used to determine natural gas, electricity, and water pricing,” the PURC continued. Maintaining the actual cost of providing these utility services is the goal, as is preventing utility firms from under- or over-recovering.
Under-recovery could lead to water supply and electricity (DUMSOR) interruptions, which would be detrimental to the firms’ capacity to provide services to customers. Consumers of energy and water are unnecessarily overburdened by over-recovery. All of these are prohibited by the Quarterly Tariff Review Mechanism.
As it continues to undertake quarterly tariff reviews in compliance with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity, and Water Tariffs, the PURC expresses gratitude to all stakeholders for their cooperation. In doing so, the Commission will keep the interests of utility service and consumers fairly balanced and hold service providers accountable for adhering strictly to regulatory requirements and benchmarks, according to the PURC.
