Water and power rates have been raised by 4.02% and 14.75%, respectively, by the Public Utilities Regulatory Commission (PURC), with effect from May 3.
The increase follows the completion of the commission’s first-half quarterly review, which aims to manage the impact on consumers while preserving energy providers’ financial health.
Changes in the domestic inflation rate, the cost of natural gas and power generation mix, and the currency rate were among the factors that led to the tariff’s approval on Friday, April 11, 2025.
“The regulatory process is in line with the Commission’s Quarterly Tariff Review Mechanism outlined in its Rate Setting Guidelines for Quarterly Adjustment of Natural Gas, Electricity, and Water Tariffs.”
The Quarterly Tariff Adjustment tracks and incorporates changes in four (4) key variables, namely, the Cedi/Dollar exchange rate, inflation, electricity generation mix, and cost of fuel (mainly natural gas) in electricity tariffs.”
“The Quarterly Tariff Review Mechanism is essentially meant to avoid over- and under-recovery of revenues,” the PURC explained.
The Commission also mentioned the requirement to recoup 50% of the GHS976 million in unpaid revenue from earlier 2024 quarters.
The upward adjustment was greatly impacted by this payback requirement. The remaining 50% will be distributed across later 2025 quarters to lessen the impact on consumers.
In order to address utility companies’ under-recoveries, which could lead to service interruptions if left unchecked, the PURC emphasized the importance of the tariff increases.
Notwithstanding the hike, the commission reaffirmed its resolve to balance utility providers’ and consumers’ interests in the face of persistent economic challenges.
Statement Below:
Source: newsthemegh.com