Ghanaians will from today October 1, 2024, start paying extra for energy and water.
It comes after the Public Utilities Regulatory Commission (PURC) approved a revised tariff that will increase water by 1.86% and electricity by 3.02% for all users.
This was stated in a statement released by PURC Executive Secretary Dr. Ishmael Ackah on September 27.
Changes in the cost of natural gas, the mix of electrical generation, the exchange rate, and domestic inflation rate were among the factors that prompted the new tariff review.
The Commission claims that the new rate is required to keep the water flowing and the light on.
According to Dr. Ackah, the hydro-thermal generating mix that was taken into consideration for the anticipated period stayed the same, with thermal sources accounting for 65.19 percent of the generation mix and hydro sources contributing 34.81 percent.
The Ghana Cedi did, however, depreciate by 4.96% versus the US Dollar between the second and third tariff quarters.
“Projected inflation rate for the period declined marginally from 24.38% to 22.27%. Similarly, the Weighted Average Cost of Gas (WACOG) declined from US$/MMBtu 8.0422 to US$/MMBtu 7.8368 for the third quarter.
“The overall changes in these factors under consideration amounted to a total under-recovery of GHS 173.98 million, which translates to a 3.02% increase in electricity tariffs. In the case of water, a revenue gap of GHS 12.01 million was recorded which translates to a 1.86% increase in water tariffs,” he said.
He stated that the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and Northern Electricity Distribution Company (NEDCo) are among the regulated utilities that the Commission expects to strictly adhere to the PURC regulatory benchmark of 98% for revenue collection and, as a result, pay what is due to all stakeholders in the value chain.
“This is very necessary for the sustainability of both the energy and water sectors,” he said.
Source: newsthemegh.com