Ghana: Electricity Tariff Up By 3.45%, 5.84%, Water Tariff Up By 5.16 %

Electricity and water consumers in the Republic of Ghana will be paying more for water and electricity with effect from July 1, 2024 to September 30, the country’s economic regulator for electricity and water utilities announced on Saturday, June 1, 2024.

According to a statement issued by the regulator and signed by its Executive Secretary Dr Ishmael Ackah, lifeline consumers (0-30 kWh) will pay 3.45 per cent more for electricity, while all other consumers who are not part of the lifeline category (31kWh and above), as well as non-residential, will pay an increase of 5.84 per cent.

Industries will experience an increase of about 4.92 per cent.

Water consumers will also pay 5.16 per cent more for three months between July and September.

The increases were based on the Quarterly Tariff Review Mechanism which tracks and incorporates movement in key uncontrollable factors, namely exchange rate between US dollar and Ghana cedi, domestic inflation rate, electricity generation mix and cost of fuel mainly natural gas.

During the first Quarter Tariff Review which took effect from April 1, the exchange rate was GH¢12.1349 to US$1, while the Weighted Average Cost of Natural Gas (WACOG) was $7.64 MMBtu.

For the second quarter, the Commission pegged the exchange rate at GH¢14.6584 to a US$1, while the Weighted Average Cost of Natural Gas (WACOG) was pegged at US$8.0422 MMBtu.

For the revenue requirement, the Commission noted that the revenue requirement for the second quarter is projected to GH¢6.81 billion from
GH¢5.67 billion in the first quarter.

This means the revenue requirement has increased by GH¢1.14 billion.

The Commission said it had decided to let the utilities recover only GH¢5.90 billion because the continuous increases in tariffs have not yielded corresponding increase in revenue collection.

Source: https://energynewsafrica.com