The Public Utilities Regulatory Commission (PURC) of Ghana has announced an increase in electricity and water tariffs, effective from 1st October 2024. Electricity tariffs will rise by 3.02 percent, while water tariffs will see an increase of 1.86 percent. These adjustments are part of the regular quarterly tariff review process, which aligns rates with economic changes such as exchange rates, inflation, and natural gas prices.
Reasons behind tariff increase
A PURC statement released on Saturday attributed the increases to a 4.96 percent depreciation of the Ghanaian cedi against the US dollar between the second and third quarters of 2024, alongside fluctuations in inflation and gas prices. This has led to revenue shortfalls of GH₵173.98 million in the electricity sector and GH₵12.01 million in the water sector, necessitating the tariff revisions.
‘Following the quarterly tariff review, the Commission wishes to inform the public that there will be a 3.02 percent increment in electricity tariffs and a 1.86 percent increment in water tariffs for the third quarter of 2024 for all categories of customers,’ the statement said.
The increase will affect all customer categories across Ghana, ensuring that the financial stability of utility providers like the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and Northern Electricity Distribution Company (NEDCo) is maintained.
Focus on financial stability and consumer protection
The PURC emphasised that these tariff hikes are essential to maintaining the sustainability of the energy and water sectors while safeguarding consumer interests. The Commission expects regulated utilities to meet a revenue collection benchmark of 98 percent, which is crucial for the continued provision of services.
To reassure consumers, the PURC stated that it will closely monitor utility companies to ensure they provide value for money and improve service quality amid these changes. The new tariffs are part of ongoing efforts to align utility costs with key economic indicators, while also ensuring the financial health of essential services in Ghana.
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