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The Public Utilities Regulatory Commission (PURC) has adjusted electricity and water tariffs upwards.

After a stakeholders meeting, the Commission decided to increase electricity and water tariff by 59.2% and 67.2% respectively.

The increment will take effect from 14th December, 2015.

Utility Service Providers in the Electricity and Water Sectors requested for an upward adjustment in electricity and water tariffs by 128.6% and 400.2% respectively.

However, in a statement signed by the Director of Public Relations and External Affairs, Nana Yaa Jantuah, the Commission considered the social impact a full cost recovery would have on certain categories of consumers who need to be supported through a Lifeline Tariff intervention which seeks to ensure that such consumers are not overburdened.

Read full statement below 

APPROVED ELECTRICITY AND WAER TARIFFS EFFECTIVE 14TH DECEMBER, 2015

The Public Utilities Regulatory Commission in the middle of the year 2015, received proposals from the Utility Service Providers in the Electricity and Water Sectors namely, the Volta River Authority (VRA), Ghana Grid Company Ltd (GRIDco), Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDco) and Ghana Water Company Limited.

The proposals were a request for an upward adjustment in electricity and water tariffs where the Electric Utilities requested for an average increase of 128.6% and the Ghana Water Company requested for 400.2% increase.

As mandated by law and the Commission’s decision-making process, extensive stakeholder consultations were held to solicit view and gather inputs for the final determination of an adjustment in tariffs.

Subsequent to a careful investigation of the proposals submitted by the Utility Service Providers and in considering the inputs of and concerns of consumers and key stakeholders who were consulted, the Commission has approved utility tariff increases for various customer categories. The approved electricity tariff increase is 59.2% across board. The approved water tariff increase for residential consumers is about 67.2%.

In arriving at a decision the Commission was guided by its mandate and considered factors which balance the following:

-          Consumer interest

-          Investor interest

-          Economic Development of the Country

-          The Generation Mix

-          Fuel Mix

-          Available of the Service

-          Growth in Demand

-          Power Purchase Cost (IPP)

-          Revenue Requirement (to ensure Financial Viability of the Utility Service Providers)

-          Cedi Dollar Exchange Rate

In adjusting the tariffs the Commission considered the social impact a full cost recovery would have on certain categories of consumers who need to be supported through a Lifeline Tariff intervention which seeks to ensure that such consumers are not overburdened. A stipulated in the Commission’s Rate Setting Guidelines in calculating the rate for Lifeline, Consumers, considering was given to the price of a gallon of kerosene. In all there are 1,147,475 customers on Lifeline which is about 32% of the customer population.

The adjustment in Tariffs is largely driven by a shift in Generation Mix from about 58.0% Hydro and 42.0% Thermal in 2013, to about 27.0% Hydro and 73.0% Thermal in 2015. The significant change and increasing dependency on thermal generation has greatly impacted on the cost of electricity generation and supplied by the Utility Service Providers. For Water Utilities, the adjustment in tariff is driven by Chemical Cost in addition to the Power purchase Cost and Operation and Maintenance Cost for the Ghana Water Company.

The Commission wishes to remind all Consumers and Stakeholders that Tariffs alone cannot raise the needed capital for the Utility Service Providers to operate effectively. In this regard the Commission is urging government to continue sourcing funds to supplement the Tariff income for infrastructural purposes.