PURC Increases Electricity Tariff By 3.02%, 1.86% For Water

• The Public Utilities Regulatory Commission (PURC) of Ghana has announced a 3.02% increase in electricity tariff and 1.86% in water tariff
• The PURC said the increments are necessary to ensure the financial stability of the power and water sectors
• The PURC also charged the utility companies to ensure that it meets its revenue collection benchmark of 98%

The Public Utilities Regulatory Commission (PURC) of Ghana has announced new increases in electricity and water tariffs, which are expected to take effect from October 1, 2024.

Electricity tariffs are expected to see a 3.02% increase, and water tariffs, a 1.86% increase.

According to the PURC, these upward tariff adjustments are necessary to keep the lights on and the taps flowing.

The adjustments were reached following the commission’s quarterly review process, which ensured the tariffs reflected changes in key economic indicators, including the inflation rate and the weighted cost of gas.

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The PURC explained that following a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024, as well as other adjustments in several key indicators, the electricity sector experienced a revenue shortfall of GH₵173.98 million and the water sector, a GH₵12.01 million shortfall.

The tariff adjustments would affect all categories of customers commencing on October 1.

The commission stated that the increments have become necessary to ensure the financial stability of utility providers: the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo) and the Ghana Water Company Limited (GWCL).

It explained that these tariff increments were done while balancing consumer protection.

The PURC also noted that tariff adjustments are not enough to ensure utility companies' financial stability if they fail to meet their revenue collection benchmark of 98%.

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The commission assured consumers that it monitors the utilities’ operations to ensure value for money and improve service quality.

PURC warns ECG could go bankrupt

The PURC warned that the ECG could soon go bankrupt due to severe financial difficulties.

The PURC sounded the alarm in a letter addressed to the presidency, the energy and finance ministers, and other key stakeholders.

Dr Ishmael Ackah, the executive secretary of the PURC, stated that the situation could have devastating effects on the operations of the Volta River Authority (VRA), Ghana Grid Company (GRIDCo), and the Bui Power Authority.

ECG boss resigns

YEN.com.gh reported that Samuel Dubik Mahama resigned as the managing director of the ECG.

Mahama did not provide an official reason for his resignation in a letter to the company board.

He was appointed by President Nana Akufo-Addo and took over the role on May 16, 2022.

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Proofread by Edwina N.K Quarcoo, journalist and copy editor at YEN.com.gh.

Source: YEN.com.gh