The Public Utilities Regulatory Commission (PURC) has announced an increase in the average end-user tariffs, raising electricity rates by 14.75% and water tariffs by 4.02% for all consumer categories. In a statement, the Commission explained that the adjustment follows its quarterly tariff review process, which is part of its rate-setting framework for reviewing natural gas, electricity, and water charges.
The PURC noted that the new rates are influenced by four major factors: the exchange rate between the Cedi and the US dollar, inflation, the electricity generation mix, and fuel costs, especially the price of natural gas used in power production.
The Commission said the goal of the adjustment is to strike a balance and prevent both over-recovery and under-recovery of revenue for utility providers. Last July, PURC had already approved tariff hikes — with electricity going up by 4.22% and water by 1.18%.
With this latest increase, the average consumer has faced a total rise of 18.97% in electricity costs and 5.20% in water tariffs over the past year, further tightening financial pressures on households amid tough economic conditions.
The Commission defended the decision by pointing to the revenue shortfalls facing utility companies, which it said have been causing severe financial strain. It warned that without the tariff adjustments, the continued under-recovery could threaten the survival of these service providers.
PURC also stressed that it exercised caution in determining the new rates, explaining that the hikes would have been even higher if the Commission had decided to recover all outstanding debts from previous review periods at once.
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