After conducting a quarterly tariff review, the Public Utilities Regulatory Commission (PURC) has announced a cut in energy and water rates that will take effect on April 1, 2026.
The proposed changes will result in an average 4.81 percent reduction in energy rates and a 3.06 percent reduction in water rates.
The Commission said in a statement released on Friday, March 13, that the evaluation was carried out in accordance with its duty to modify rates on a quarterly basis to account for shifts in important operational and economic factors that impact utility service providers.
The announcement stated, “The Public Utilities Regulatory Commission (PURC) wishes to inform consumers of electricity and water that the existing electricity and water tariffs have been reviewed downwards to take effect from April 01, 2026.”
The PURC clarified that the quarterly assessments monitor changes in metrics including the exchange rate between the Ghanaian Cedi and the US dollar, domestic inflation, the mix of electricity generation, and the price of fuel, especially natural gas, used in thermal power generation.
The Commission stated that these changes are required to preserve the true value of tariffs, allowing utility service providers to continue providing consumers with dependable services while maintaining their financial viability.
In the most recent evaluation, the PURC used the three-month interbank average from December 1, 2025, to February 28, 2026, to forecast a weighted average exchange rate of GHS11.1931 to US$1 for the second quarter of 2026. Compared to the previous quarter’s rate of GHS12.0067 to the dollar, this is a 6.78% decrease.
“The Commission applied a projected Weighted Average Ghana Cedi-US Dollar Exchange Rate of GHS11.1931/US$1.0000 for the second Quarter of 2026. This projected exchange rate is based on a 3- month Actual Inter-Bank Average Ghana Cedi-US Dollar Selling Exchange Rate for the period December 01, 2025, to February 28, 2026. This indicates a 6.78% reduction from the last Quarter rate of GHS12.0067/ US$1.0000,” the statement said.
For the same period, the Commission also employed a three-month average inflation rate of 4.17%, which represents a 47.87% decrease over the prior quarter.
In the meantime, the Weighted Average Cost of Gas (WACOG) increased by 2.84 percent from the previous rate of US$7.8749 per MMBtu to US$8.0988 per MMBtu.
According to the Multi-Year Tariff Order of 2025, the anticipated energy generation mix for the quarter is still 20.90 percent from hydro generation and 79.10 percent from thermal sources.
The Commission also said that, in order to aid the nation’s shift to renewable energy, it has implemented a commercial EV charging fee for the first time.
As it conducts quarterly tariff assessments in accordance with its rate-setting criteria, the PURC thanked stakeholders for their ongoing cooperation.
The Commission further stated that in order to guarantee better service delivery and value for customers, it will keep an eye on the activities of regulated utility companies and hold them responsible.
Source: newsthemegh.com