The Public Utilities Regulatory Commission (PURC) has announced increases of 14.75% and 4.02% for electricity and water utilities tariffs, respectively, for the second quarter of 2025, effective May 3. The announcement follows the conclusion of the Commission’s Board meeting to discuss the quarterly tariff review on Friday, April 11, 2025.
Key factors that influence electricity tariff reviews include the exchange rate, inflation, Weighted Average Cost of Gas (WACOG), generation mix, and the cost of fuel and natural gas.
In a statement issued by Dr. Shafic Suleman, the Commission said a key variable factor that contributed significantly to the 2025 quarterly tariff adjustment was an inevitable attempt to pay half (50%) of an outstanding revenue of Gh¢976 million carried over from the previous three quarters of 2024.
The Commission emphasised that the remaining 50% will be spread over the subsequent quarters of the year.
“For the second quarter of 2025, a Weighted Average Exchange Rate of GHS 15.6974 to the USD was used for computation of the tariffs. This implied an under-recovery of GHS 0.1700 from the last quarter review in 2024.
“The Commission used an average three-month projected inflation rate of 22.49% for the second quarter of 2025.
“The applicable Weighted Average Cost of Gas (WACOG) for the second quarter of 2025 is USD 7.6289/MMBtu. This figure dropped from USD 7.8368/MMBtu, which was applied in the third quarter of 2024. The projected hydro-thermal generation mix for the quarter under review is 28.80% for Hydro and 71.20% for Thermal,” the Commission explained.
Source:https://energynewsafrica.com
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