The 3.02% increase in electricity tariffs for the Electricity Company of Ghana (ECG) and the 1.86% rise in water tariffs for the third quarter of 2024, approved by the Public Utilities Regulatory Commission (PURC), takes effect from today, October 1, 2024.
On Saturday, September 28, the Public Utilities Regulatory Commission (PURC) announced an increase in utility tariffs, attributing the rise to fluctuations in the exchange rate, inflation, and gas prices.
“The Commission’s decision is based on changes in some key parameters, such as inflation rate, exchange rate, and the Weighted Average Cost of Gas (WACOG) over the projected Third Quarter. The Commission also considered several other underlying factors, including the current economic conditions and general living standards of Ghanaians, and the competitiveness and sustainability of industries.” The Press statement noted
According to the Commission, the review, undertaken within the PURC Quarterly Tariff Review Framework, is to account for changes in key uncontrollable factors, specifically the US Dollar/Ghana Cedi exchange rate, domestic inflation rate, cost of natural gas and electricity generation mix, among others.
Explaining further, the Commission indicated that by incorporating changes in the values of these indicators in the quarterly tariff reviews, they would ensure that the real value of the tariffs is maintained, to provide for the financial viability and ability of utility service providers to deliver on their mandate.
“This is necessary to keep the light on and the water flowing.” The Statement disclosed
However, the Ghana Union of Traders Association (GUTA) has questioned the justifications for the recent upward adjustment in water and electricity tariffs stressing that the increment will further reduce the purchasing power of consumers.
Public Relations Officer for GUTA, Joseph Paddy, bemoaned that the increase will worsen the standards of living of Ghanaians.
“The new tariff is not justifiable. That [the new tariff] is a result of increasing gas prices and also interest rates and exchange rates going up. Who caused the exchange rate to go up? And that is what the fiscal committee has been complaining about, the instability in the system.
“So they should come again otherwise, it is going to make the cost of living in the country extremely difficult for Ghanaians and very high.
