The Public Utilities Regulatory Commission (PURC) has increased the average end-user tariffs for electricity by 27.15 per cent and water by 21.55 per cent, effective September 1, 2022.
The commission has also approved a Weighted Average Cost of Gas (WACOG) of GH¢ 44.
Dr Ishmael Ackah, Executive Secretary of the PURC, explained that the tariff decision for the period 2022-2025 was informed by rigorous analyses, intense debates and extensive consultations.
He said this when he announced the 2022-2025 multi-year major tariff review for natural gas, electricity and water services in Accra yesterday.
Dr Ackah indicated that the new electricity tariff, effective September 1, 2022, for lifeline customers was 41.9 pesewas; 89.04 pesewas for residential customers and 83.7 pesewas for non-residential customers.
For water tariffs, new tariff for residential customers was 6.8 pesewas; 11.2 pesewas for non-residential; 15 pesewas for commercial (sachet water producers); 45.9 for commercial (special commercial) while industrial consumers will pay tariffs between four to 45 pesewas.
For the end-user electricity tariffs payable by consumers, Dr Ackah noted that the commission considered a number of factors, including the cost of power which is influenced by growth in demand, (WACOG), inflation and the Ghana Cedi/US Dollar Exchange Rate.
“For water, the commission took cognisance of the cost of electricity, increased volume/cost of chemicals for raw water treatment, the Ghana Cedi/US Dollar exchange rate, inflation, infrastructure upgrade/expansion and, operation and maintenance of service delivery as well as financial viability of Ghana Water Company Limited (GWCL),” he added.
The PURC Executive Secretary also said in approving the WACOG, the commission considered GNPC’s projected gas volumes by gas source and tariffs as well as projected gas supply volumes and tariffs by N-Gas.
Dr Ackah disclosed that the commission gave considerable thought to the role of small and medium scale enterprises in the country’s economic development, particularly the creation and preservation of jobs and livelihoods.
“To address the challenge, for the first time, industry including, small and medium scale business owners of Hairdressing and Beauty Parlours/Salons, Barbering Shops, Tailoring and Dress Making Shops, Welding, Mechanics, Cold stores, Chop bars, Vulcanising and Carpentry Workshops among others will now pay lower tariffs than the residential consumer class,” he stated.
“This is to address the high electricity cost for industrial customers which has been repeatedly identified in the AGI Business Barometer as the key challenge affecting the competitiveness of Ghanaian industry in the global market place,” he added.
Dr Ackah said the PURC in ensuring the interests of both consumers and utilities acknowledged that the very economic variables that have occasioned the steep increases proposed by the service providers also affected consumers. “The commission admitted, however, that some level of increases in utility tariffs were inevitable if the nation was to avoid another dumsor and its attendant effects including job losses,” he added.
Dr Ackah therefore applauded all stakeholders for their participation and inputs in the tariff approval process and added that, “the Commission will continue to monitor the operations of the Utility Service Providersto ensure value for money and quality of service delivery.”
“After this major Tariff Review, the Commission will implement its Quarterly Tariff Review in line with its Rate Setting Guidelines for Quarterly Review of Natural Gas, Electricity and Water Tariffs,” he added.
BY ABIGAIL ARTHUR