PURC increases electricity and natural gas tariff by 18.36%

For all consumer groups, the Public Regulatory Utilities Commission has raised electricity and natural gas rates by a total of 18.36%.

Following a review for the second quarter of 2023, the decision was made.

In a statement, PURC said that the decision was made to strike a compromise between mitigating the effects of rate hikes on consumers and preventing prolonged power outages and their detrimental effects on jobs and lives.

The Quarterly Tariff Review Mechanism aims to monitor and take into account changes to important variables that are used to calculate natural gas and electricity pricing.

The Ghana Cedis/US Dollar exchange rate, inflation, the mix of electrical generation, and the weighted average cost of natural gas (WACOG) were all cited by the PURC as contributing causes to the most recent increase.

“This review has become necessary to maintain the real value of the cost of supply of the utility services and to ensure that the utility companies do not under or over-recover costs.

“While under-recovery has negative implications for the ability of the companies to supply service to consumers, and has the potential of causing outages of electricity, over-recovery unnecessarily overburdens consumers of electricity.

Read the full statement below:

Source: Ghanatodayonline.com