The Public Utilities Regulatory Commission has announced a downward review of electricity tariffs effective December 1, 2023 to February 29, 2024. The adjustment is in line with the Commission’s Quarterly Tariff Review Mechanism using key factors such as the exchange rate between the US$ and the Ghana Cedi, domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.
While electricity tariffs saw a downward adjustment of 1.52%, water tariffs, on the other hand, were adjusted upwards. Using the same key indicators, water tariffs have increased by 0.34% for the same period. According to the PURC, “Adjustments to the existing electricity and water tariffs is undertaken on a quarterly basis to maintain the real value of the tariffs, thereby keeping the utility service providers financially viable to enable them to deliver on their services to consumers. “In addition, the Commission considered the competitiveness of industries and the general living conditions of the Ghanaian.”
“The Commission is grateful to all stakeholders for their support as it continues to implement Quarterly Tariff Reviews per its Rate Setting Guidelines to address changes in operational conditions while holding the Utility Service Providers to strict adherence to its regulatory standards and benchmarks by continually monitoring operations of the Utility Service Providers to ensure value for money and quality of service delivery,” it added.
See below the results from analyses of the above four factors and their impact on the said tariffs to be paid by consumers for the period under review;
By: Cornerlis Kweku Affre