Ghana: PURC Increases Electricity Tariff By 27.15 %, Water 21.55%

The Public Utilities Regulatory Commission (PURC) has announced a 27.95 per cent increase in electricity and a 21.55% increase in water tariffs.

This will be effective come 1st September, 2022.

The announcement follows extensive stakeholders’ consultations over the last three months.

The Commission made the announcement at a press conference in Accra on Monday, 15th August, 2022.

In a proposal submitted to PURC, the ECG, which is responsible for power distribution in the southern part of Ghana, demanded a 148 per cent increment for their distribution service charge from Ghp16.109/kWh to Ghp39.95 /kWh while NEDCo, which is responsible for the northern part, was also demanding a 113 per cent increment in their distribution service charge from Ghp31.503/kWh to Ghp35.63/kWh.

State power producer, VRA, demanded 37 per cent from Ghp28.227/kWh to Ghp38.687/kWh while GRIDCo is demanded 48 per cent.

Enclave Power Company also demanded 38 per cent from Ghp31.530 /kWh to Ghp43.30/kWh.

Meanwhile, Ghana Water Company asked for 300 per cent in tariffs from Ghs7.2/M3 to Ghs28.2/M3.

Executive Secretary of the Public Utilities Regulatory Commission Dr. Ishmael Ackah said the Commission believes the new rate is sensitive to the plight of consumers.

“In balancing the interests of 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 consumers. The commission admitted, however, that some level of increases in utility tariffs were inevitable if the nation was to avoid another ‘dumsor’ and its attendant effects including job losses.

“The Commission therefore decided to increase the average end-user tariff for electricity by 27.15% and water by 21.55% effective 1st September, 2022. These rates, in view of the Commission, are sensitive and responsive to the positions of all stakeholders in the utility space in line with sections 3(c) of PURC Act 1997 (Act 538).

“The PURC is grateful to all stakeholders for their participation and inputs into the tariff approval process. The Commission will continue to monitor the operations of the Utility Service Providers to ensure value for money and quality of service delivery,” Ackah said.

Ackah said the PURC will now implement its quarterly tariff review after the announcement of the new tariff.

“After this major Tariff Review, the Commission will implement its Quarterly Tariff Review in line with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity and Water Tariffs,” he added.

 Source: https://energynewsafrica.com