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Cedi Depreciation, High Fuel Cost Caused Utility Tariffs Increment – PURC
The Public Utilities Regulatory Commission (PURC) has attributed its upward adjustment of utility tariffs to factors such as the depreciation of the local currency and the high cost of fuel.
The PURC on May 31 announced an increase in water and electricity tariffs for the second quarter of 2024, effective from July 1 to September 20, 2024.
According to the commission, residential electricity consumers will see an upward adjustment of 5.84% in rates.
The May 31 statement added that tariffs for lifeline consumers will see a 3.45% increase.
…there will be 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh); 5.84% increase for all other residential consumers who are not part of the lifeline category bracket (31 kWh and above) as well as the non-residential category,” the PURC said.
However the industrial category “will experience an increase in electricity tariffs of 4.92%.”
For water, Ghanaians will see “an increase of 5.16% for all customer classes for the period under review.
In a statement signed by PURC’s Executive Secretary, Ishmael Ackah, the reviews were undertaken in line with the Commission’s Quarterly Tariff Review Mechanism, which tracks and incorporates movements in key uncontrollable factors, namely the exchange rate between the US$ and the Ghana Cedi, domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.
The commission says it also considered the competitiveness of industries and the general living conditions of the Ghanaians in arriving at this review.
Credit: Kenneth Awotwe Darko
