The Public Utilities Regulatory Commission (PURC) has announced an increase in electricity and water tariffs, effective from July 1 to September 30, 2024.
According to a statement signed by Executive Secretary Dr. Ishmael Ackah on May 31, the new rates will see a 3.45% increase in electricity tariffs for lifeline consumers (those using 0-30kWh), and a 5.84% increase for other residential consumers (31 kWh and above) as well as non-residential consumers. Industrial category consumers will experience a 4.92% increase in electricity tariffs.
Additionally, water tariffs will increase by 5.16% for all customer classes during this period.
The statement read, “The Public Utilities Regulatory Commission wishes to inform consumers of electricity and water that there has been a review of the existing tariffs, to take effect from July 1, 2024, to September 30, 2024. Having considered all the underlying factors, the Commission wishes to announce a 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh); a 5.84% increase for all other residential consumers (31 kWh and above) and the non-residential category. The industrial category will experience a 4.92% increase in electricity tariffs. Water tariffs will increase by 5.16% for all customer classes for the period under review.”
The PURC attributed the tariff hikes to various factors including the depreciation of the cedi, inflation, the cost of fuel, and the electricity generation mix.
These reviews are part of the Commission’s Quarterly Tariff Review Mechanism, which tracks and incorporates changes in key uncontrollable factors such as the exchange rate between the US dollar and the Ghana cedi, the domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.
“These reviews are undertaken to maintain the real value of the tariffs, thereby keeping the utility service providers financially viable to enable them to deliver on their services to consumers,” the statement explained.
The Commission also considered the overall living conditions of Ghanaians and the competitiveness of industries in making its decision.
“The Commission, in undertaking this review, also considered the competitiveness of industries and the general living conditions of the Ghanaian populace,” the PURC highlighted.
