PURC increases water, electricity tariffs 3rd time in 2023

• Posted on August 23, 2023August 23, 2023
• by Nana Kwesi Coomson
• Comment

The Public Utilities Regulatory Commission (PURC) has announced an increase in water and electricity tariffs for some customers following its third quarter review.

The increase will affect non-lifeline residential customers, and customers such as hairdressers, tailors, and small- and medium-scale businesses. Meanwhile, lifeline customers, industrial customers, and non-residential customers such as barber shops and chop bars will not see any tariff increase.

The PURC stated that it considered several factors when making the decision, including inflation, exchange rates, and the weighted average cost of natural gas for electricity generation. The Commission also took into account the concerns of the Association of Ghana Industries (AGI) with regards to cross-subsidisation between industrial and residential customers.

The decision was made to reduce cross-subsidies and support the competitiveness of Ghana’s industries, while also ensuring that utilities are financially viable and reducing the burden on consumers.

The increase in electricity tariffs across board for non-lifeline residential customers is 4.22 percent, while all customers except lifeline customers will see a 1.18 percent increase in water tariffs.

The new rates will take effect from September 1 until the end of the year. The PURC noted that it was guided by the interests of consumers, the financial viability of utilities, and the general economic conditions prevailing in the country.

While some customers may be unhappy with the tariff increase, it is hoped that the new rates will help to improve the financial standing of utilities and support Ghana’s industrialisation drive.

By Vincent Kubi