PURC announces major tariff increment for domestic consumers
The Public Utilities Regulatory Commission (PURC) has reviewed electricity and water tariffs upwards, with hikes of 59.2 per cent for electricity and 67.2 per cent for water, for domestic consumers across board.
The increment, necessitated by proposals for upward tariff adjustment by utility service providers, takes effect from December 14.
Nana Yaa Gyantua, Public Relations and External Affairs Director of the PURC who announced this in Accra on Monday said the electricity tariff increment was largely driven by a shift in generation mix, with Ghana depending increasingly on thermal energy sources that have impacted on the cost of electricity generation.
She said the water utilities adjustment was determined by chemical cost in addition to power purchase cost, operational and maintenance costs for the Ghana Water Company
Ghana currently gets about 73 per cent of its electricity generated from thermal plants, with its attendant high cost of production.
The Volta River Authority, Ghana Grid Company Ltd, Electricity Company of Ghana, Northern Electricity Distribution Company had requested 128.6 per cent increment while the Ghana Water Company asked for 400.2 per cent increment.
Factors considered by the Commission before approving the increments are: Consumer Interest; Investor Interest; Economic Development of the Country; The Generation Mix; Fuel Mix; Availability of the Service; Growth in Demand; Power Purchase Cost; Revenue Requirement (to ensure Financial Viability of the Utility Service Providers); Cedi Dollar Exchange Rate.
The PURC said it would announce the tariff increment rate for industrial consumers at a later date.