Water And Electricity Tariff To Be Increased From September 1

Water And Electricity Tariff To Be Increased From September 1

  • Amid the biting economic hardship, electricity and water bills are set to be increased substantially in the coming days
  • The Public Utilities Regulatory Commission (PURC) is set to announce new tariffs for water and power soon to take effect from September 1, 2022
  • The last time electricity and water tariffs went up was in 2017 but the upcoming increases are coming amid economic hardship in Ghana

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The utility regulator is set to announce higher tariffs for water and electricity to take effect from September 1, 2022.

The Public Utilities and Regulatory Commission (PURC) has completed nationwide consultations on proposals it received from the utility companies for an upward review and would disclose the new tariffs in the coming days.

According to state-owned Daily Graphic, the PURC will not announce a blanket rate of increase as the new tariffs will depend on the reasons and proofs provided by the utilities and the independent research the Commission has done.

Ghana ECG and water bills
Stock images show an electrical engineer, Ghana cedi note and coins and water. Source: UGC/Ghana Water Company and Electricity Company of Ghana.
Source: UGC

The upcoming new tariffs will be first since 2017 and they are coming amid high inflation of almost 30% and general economic hardship in Ghana.

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It is not clear how much higher the PURC will increase the tariffs, however, the utility companies had demanded what many say were quite high.

In May this year, the Electricity Company of Ghana (ECG) proposed a very high 148% increase in tariff.

In addition, the ECG put forth an average tariff increase of 7.6% over the next four years to cover distribution service charges.

The water company, Ghana Water Company Limited (GWCL), also proposed a 334% increase in tariff. The GWCL in its proposal said over the years, the approved tariffs have not been fully cost-reflective.

The Volta River Authority (VRA) has also proposed 37%, with the Ghana Grid Company Ltd (GRIDCo) proposing 48%.

Other proposals were 38% from the only private power distributor, Enclave Power, and 113% increase over the existing tariffs of the Northern Electricity Distribution Company (NEDCo).

Meanwhile, many Ghanaians feel the existing tariffs are already too high.

Ghana Among Top 10 African Countries In Ranking On Best Access To Electricity

YEN.com.gh reported in a previous story that data by the 'Tracking SDG7: The Energy Progress Report' on access to electricity in 20 African countries shows Ghana listed among the top ten countries with the best access.

Ghana is ranked 7th with 85% access to power nationwide, just below South Africa's 6th position with 84% access to power.

Ghana also beats notable countries like Nigeria, Kenya, Ivory Coast, and Cameroon, among other nations.

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Source: YEN.com.gh

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