Electricity and Water tariffs hike to take effect July 1st 2019

The Public Utility Regulatory Commission (PURC) has announced an 8.01% increase in water tariff for the year 2019/2020 effective July 1st 2019, same day as the new electricity tariff which was announced last week.

The pronouncement of the electricity tariff which was made on Friday June 21st 2019, indicated that an 11.17% tariff increase will be charged for the recovery of total electricity revenue requirement for the regulated electricity market.

According to Executive Secretary of PURC, Mami Dufie Ofori the decision for the 2019/2020 tariff increment was taken after a prudent cost review and effective monitoring done by the commission. 

She hinted that factors that contributed to the review of tariffs included the inflation rates, fuel price hikes as well as the Ghana cedi-US dollar exchange rates.

“The key assumptions underpinning the determination and approval of the tariffs of electricity for the regulated market are: 2019/2020 electricity supply plans, generation mix of 23% hydro and 77%thermal, Ghana cedi-US dollar exchange rate of GHC5.05/USD1.00, projected inflation rate of 8%, projected fuel prices, expected increase in electricity demand, transmission system losses of 4.1%, expected increase in volume of electricity to be transmitted of 8.6%, base distribution of aggregate technical& commercial loss ratio of 22.6%, provision for uncollectible revenue of 2%.
And for water: Electricity cost, cost of chemicals, Ghana cedi-US dollar exchange rate.”

Commissioner and Chairman of the Technical Committee, Ishmael Edjekumhene stated that in an attempt to cushion the impact of the new electricity tariff on businesses the demand tariff have been dropped.

“The announcement that the demand tariff have been dropped and that only energy charges are going to be paid by the utility is actually meant to cushion the utilities impact of the tariff on businesses especially the low tariff category of customers.”

The Public Utility Regulatory Commission added that its outfit is committed to ensuring sustainability and growth of quality electricity and water service provision for socio economic development.

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