Source: Africa Publicity
Ghana is bracing itself for a significant increase in electricity and water tariffs, effective May 3, 2025. The Public Utilities Regulatory Commission (PURC) has announced an upward adjustment in tariffs, citing the need to ensure revenue stability for utility service providers while minimizing the financial impact on consumers.
Tariff Adjustments
– Electricity Tariffs: will increase by an average of 14.75%
– Water Tariffs: will go up by 4.02%
Reasons for the Adjustment
The PURC attributed the increments to various factors, including:
– Exchange Rate: fluctuations between the Ghana cedi and the US dollar
– Inflation Projections: rising inflation rates
– Fuel Costs: particularly natural gas
– Hydro-Thermal Generation Mix: current generation mix
– Outstanding Revenue: need to recover 50% of GHS976 million in unpaid revenue from previous quarters in 2024
Mitigating the Burden on Consumers
To ease the burden on consumers, the remaining 50% of the outstanding revenue will be spread over subsequent quarters in 2025. The PURC emphasized that the tariff increments are crucial to addressing under-recoveries by utility companies, which could lead to service disruptions if left unaddressed.
Balancing Interests
Despite the increase, the Commission reaffirmed its commitment to balancing the interests of both consumers and utility providers amid ongoing economic pressures. The full details of the tariff adjustments will be published in the government gazette and made available on the Commission’s official website for public access.
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