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| Water and Electricity Tariffs Have Increased |
According to recent news, the Public Utilities and Regulatory Commission has raised the cost of water and energy. As of February 1, 2023, the new prices for energy and water are 29.96% and 8.3%, respectively.
This comes after the completion of its regulatory procedure for the utility tariffs' quarterly adjustment for the first quarter of 2023. According to the Commission, the procedure complies with the Quarterly Tariff Review Mechanism and Guidelines as stated in the Commission's major tariff review decision from August 2022.
This was said in a press statement that was released on Monday in Accra.
The new tariffs were authorized by the PURC after careful consideration of the present economic situation, according to a statement made by the Executive Secretary, Dr. Ishmael Ackah.
The possibility of a return to the days of unpredictable power supply, it was noted, was also taken into consideration because it would be "catastrophic for Ghana."
In light of this, the Commission made the decision to raise the average end-user tariff for electricity by 29.96% for all consumer groups. The average end-user water tariff has also gone up by 8.3%. However, as part of the ongoing restructuring of the current water rate structure, the Commission approved a range of adjustment rates, including some reductions for certain industrial and commercial consumers, according to the press release.
With effect from February 1, PURC raises the prices for energy and water.
"The Quarterly Tariff Review Mechanism seeks to track and incorporate changes in key factors used to determine natural gas, electricity, and water tariffs," the PURC continued. Maintaining the actual cost of providing these utility services is the goal, as is preventing utility companies from under- or over-recovering.
Under-recovery could lead to water supply and electricity (DUMSOR) outages, which would be detrimental to the companies' ability to provide services to customers. Consumers of electricity and water are unnecessarily overburdened by over-recovery. All of them are prohibited under the Quarterly Tariff Review Mechanism.
As it continues to undertake quarterly tariff reviews in compliance with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity, and Water Tariffs, the PURC expresses gratitude to all stakeholders for their cooperation. In doing so, the Commission will keep the interests of utility service and customers fairly balanced and hold service providers accountable for adhering strictly to regulatory requirements and benchmarks, according to the PURC.
