With effect from October 1, 2024, the Public Utilities Regulatory Commission (PURC) of Ghana has announced fresh increases in water and power rates of 1.86% and 3.02%, respectively.
PURC Executive Secretary Dr. Ishmael Ackah made a statement that included these information.
PURC made clear that a number of factors, including changes in gas prices, exchange rate fluctuations, and inflation, had an impact on this modification.
The Commission emphasized that great consideration was given to Ghana’s present economic issues and the effect on living standards in reaching this conclusion.
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.
“There was, however, a 4.96% depreciation of the Ghana Cedi against 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 explained.
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