PURC Announces 3.02% Increase in Electricity Tariffs, 1.86% for Water, Effective October 1
The Public Utilities Regulatory Commission (PURC) of Ghana has announced a modest adjustment in utility tariffs, with electricity prices set to rise by 3.02% and water tariffs by 1.86%, effective October 1, 2024.
The changes come as part of the regulator’s routine quarterly review, designed to reflect shifts in key economic indicators, including the US Dollar/Ghana Cedi exchange rate, inflation, and natural gas costs.
In a statement issued on September 28, PURC attributed the upward revisions to several macroeconomic pressures, notably a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024.
Adjustments in inflation and rising gas prices also contributed to the decision. The tariff increases aim to address revenue shortfalls of GH₵173.98 million in the electricity sector and GH₵12.01 million in the water sector.
PURC underscored the need for these increases to bolster the financial health of key utility providers, including the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and Northern Electricity Distribution Company (NEDCo).
The regulator emphasized the importance of ensuring that these entities meet a 98% revenue collection benchmark, a critical threshold for maintaining the stability of the utility sectors.
The Commission reassured consumers that it remains committed to monitoring the performance of service providers to guarantee value for money and improve service delivery, while balancing the impact of price hikes on consumers.
