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With effect from October 1, 2024, the Public Utilities Regulatory Commission (PURC) of Ghana has announced further hikes in water and power rates of 1.86% and 3.02%, respectively.
This is a periodic assessment procedure carried out by the Commission every quarter to make sure that tariffs accurately reflect changes in important economic variables including inflation, the price of natural gas, and the exchange rate between the US dollar and Ghana cedi.
In a statement issued on Saturday, September 28, the PURC stated that a number of factors, including the cedi’s 4.96% decline in value relative to the US dollar between the second and third quarters of 2024, as well as changes in inflation and gas prices, among other things, are what led to the decision to raise the tariffs.
Due to these reasons, the power and water sectors had revenue shortfalls of GH₵173.98 million and GH₵12.01 million, respectively.
“Following the quarterly tariff review, the Commission wishes to inform the public that there will be a 3.02% increment in electricity tariffs and a 1.86% increment in water tariffs for the third quarter of 2024 for all categories of customers,” part of the statement read.
The Commission clarified that the increases are required to balance consumer protection with the financial viability of utility providers, such as the Northern Electricity Distribution Company (NEDCo), Ghana Water Limited (GWL), and the Electricity Company of Ghana (ECG).
The viability of the electricity and water industries depends on regulated utilities meeting a revenue collection standard of 98%, according to PURC.
Customers were reassured by the declaration that it will keep an eye on utility providers’ activities to guarantee value for money and raise the caliber of services.
Read the full statement below:
Source: Ghanatodayonline.com
