The Public Utilities Regulatory Commission (PURC) has announced a new round of utility tariff increases, raising electricity prices by 14.75% and water tariffs by 4.02%.
The latest adjustments, which affect all categories of consumers, take immediate effect.
In a statement, the Commission said the tariff hikes are part of its quarterly review mechanism, as outlined in its rate-setting guidelines for adjusting natural gas, electricity, and water prices.
Exchange rate, inflation, fuel costs
The PURC explained that the review was necessitated by four critical variables: the exchange rate between the Cedi and the US dollar, prevailing inflation rates, the current electricity generation mix, and the cost of fuel—primarily natural gas—used in electricity production.
“These adjustments are meant to ensure that utility providers neither over-recover nor under-recover their revenues,” the statement read.
Consumers feel the pinch
This marks the second major increase in less than a year.
In July 2024, electricity tariffs went up by 4.22%, while water tariffs rose by 1.18%.
With today’s hike, consumers have now absorbed a cumulative 18.97% increase in electricity charges and a 5.20% jump in water costs within a year—adding further pressure on household budgets amid a difficult economic climate.
Utility companies under pressure
The Commission also pointed to the financial stress facing utility providers, warning that under-recovery of revenue was causing “serious bleeding” in the sector.
Without the necessary adjustments, it cautioned, the viability of these companies could be at risk.
Despite the upward adjustment, the PURC noted that it exercised restraint.
“The increments could have been higher had the Commission sought to fully recover all outstanding deficits from previous quarters,” the statement added.
The announcement is expected to draw public concern, particularly from consumer advocacy groups and businesses already grappling with high operational costs.
