The Public Utilities Regulatory Commission, PURC, has reviewed upwards the average end-user tariff for electricity and water. Electricity tariff is up by 14.75 percent, and water by a 4.02 percent across board for all categories of consumers. In a statement, the Commission said the review in the prices is in line with its quarterly tariff review mechanism.
The PURC’s adjustments are driven by exchange rate volatility, inflation, electricity generation mix, and the cost of fuel, mainly natural gas in electricity production. The Commission warns that failure to increase tariffs could potentially push the utility companies out of business.
The statement said the Commission, being mindful of the current economic difficulties for Ghanaians has decided to recoup only half of the outstanding debts.
Providing more clarity to the adjustments in water and electricity tariffs, the Executive Director, Center for Energy Policy, Ben Boakye is of the view that ”upward adjustments of tariffs are NOT the solution to improving the inefficiencies in the country’s Energy Sector”.