The Public Utilities and Regulatory Commission (PURC) has announced a 3.02% increase in electricity tariffs and a 1.86% rise in water tariffs for all customer categories in the third quarter of 2024. These new tariffs will take effect on October 1, 2024.
The decision is based on changes in key factors such as the inflation rate, exchange rate, and the Weighted Average Cost of Gas (WACOG) for the projected quarter.
The Commission also took into account various underlying elements, including current economic conditions, the general living standards of Ghanaians, and the competitiveness and sustainability of industries.
This information was released in a statement on Saturday, September 28.
“In approving this tariff, the Commission was mindful of the following key objectives: (i) cost recovery for the provision of utility services, and (ii) a reduction in the fiscal burden of government for subsidizing the regulated electricity and natural gas sectors.”
“The Commission expects the regulated utilities, including the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and Northern Electricity Distribution Company (NEDCo) to adhere strictly to the PURC regulatory benchmark of 98% for revenue collection; and consequently, pay what is due to all stakeholders in the value chain. This is very necessary for the sustainability of both the energy and water sectors.”
“This is also on account of the fact that the approved increase in both electricity and water tariffs is expected to translate into increased revenue requirements and collections for ECG, NEDCo, and GWL, with the following projected monthly revenues for the third quarter:
GHS 2,024.5 million for ECG, GHS 243.20 million for NEDCo, and GHS 227.40 million for GWL. It is therefore the expectation of the Commission that this increased revenue requirement will be commensurate with the expected collections in accordance with the 98% revenue collection benchmark,” the PURC further indicated in the statement.
