Over 18 % electricity tariff hike will increase hardships
Over 18% electricity tariff hike announced by the Public Utilities Regulatory Commission (PURC) for all consumer groups will increase hardships on consumers.
The announcement follows a review of the second quarter of 2023.
A statement issued by PURC and signed by Dr Ishmael Ackah, the Executive Secretary, said the decision is to prevent prolonged power outages and the associated negative impacts on employment and livelihoods.
According to the regulator, the increase is also to minimize the effect of the rate hike on customers.
The Quarterly Tariff Review Mechanism was employed to take into account the changes in the key factors used to determine electricity and natural gas rates.
PURC blamed the recent increase on the exchange rate of the cedi against the dollar, inflation, electricity generation mix, and the Weighted Average Cost of Natural Gas (WACOG).
Over 18% electricity
The Regulator explained that the review was necessary to maintain the real value of the cost of supply of the utility services and to ensure that the utility companies do not under or over-recover costs.
It pointed out that while under-recovery has negative implications for the ability of the companies to supply service to consumers, and has the potential of causing outages of electricity, over-recovery overburdens consumers unnecessarily.
PURC said under-recovery has the potential to lead to electricity outages, while over-recovery would be an undue burden on electricity consumers.
The Public Utilities Regulatory Commission (PURC) has announced an upward review of electricity and water tariffs for the first quarter of 2023. The new tariffs, which take effect
On February 1, 2023, tariffs went up by 29.96% across the board for all customers while water increased by 8.3%.
In September 2022, tariffs were increased by 27.15% for electricity and 21.55% for water.
The Public Utilities Regulatory Commission (PURC) was established in October 1997 under the Public Utilities Regulatory Commission Act, 1997 (Act 538) as a multi-sector regulator to regulate the provision of electricity and water utility services. The establishment of the Commission was part of the Government of Ghana’s utility sector reform process.
By virtue of the Energy Commission Act, 1997 (Act 541) PURC also regulates transportation of natural gas services.
Under Section 4 of Act 538, PURC is an independent body and is not subject to the control of any authority in the performance of its functions. The Commission however submits annual operational and financial reports to Parliament. The Office of the President also exercises some administrative oversight for the Commission.
PURC is made up of nine Commissioners including a Chairman, an Executive Secretary, an institutional representative each for labour, industry and domestic consumers, as well as 4 experts in various aspects of the Commission’s work. Commissioners are appointed by the President in consultation with the Council of State for five-year terms, which are renewable. The Commission is supported by a Secretariat headed by the Executive Secretary.
