Tariff hikes Electricity up by 59.2%, water 67.2%

The commission announced that changes are expected to take effective from December 14, 2015.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

The Public Utilities Regulatory Commission (PURC) has increased electricity and water tariffs by 59.2% and 67.2% respectively.

The commission announced that changes are expected to take effective from December 14, 2015.

A statement signed by Nana Yaa Jantuah Director of Public Relations at the PURC noted, “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.

Read more: Ghana's electricity cost highest in West Africa - ACEP

“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 PURC admitted that the increments were also necessitated by proposals it received in the middle of 2015 from utility service providers asking for an upward adjustment in tariffs.

The Volta River Authority (VRA), Ghana Grid Company Ltd (GRIDco), Electricity Company of Ghana (ECG) Northern Electricity Distribution Company (NEDco) had requested 128.6% increment while the Ghana Water Company asked for 400.2% increment.

See also: We're not aware of any directive to increase utility tariffs - PURC

“As mandated by law and the Commission's decision-making process, extensive stakeholder consultations were held to solicit views and gather inputs for the final determination of in 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 statement stated.

 

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 (IPP); Revenue Requirement (to ensure Financial Viability of the Utility Service Providers); Cedi Dollar Exchange Rate

 

The Commission said in arriving at a decision also took into consideration the social impact a full cost recovery would have on certain categories of consumers who need to be supported. 

The statement also pointed out 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.”

Recommended Articles

Recommended Videos





Top Articles

1 In Central Region Corpse exhumed for dodging communal labour while alivebullet
2 Prophecy Obinim makes some death revelationsbullet
3 Fatal 10 die in Winneba–Cape Coast accidentbullet
4 Bole Highway 11 killed, 7 injured in bus accidentbullet
5 Bin Atef Ex-Gitmo detainee marries in Ghanabullet
6 Busted Police arrest six Nigerians for alleged kidnapping and rapebullet
7 Adult Content We will continue showing porn on TV - Ice TVbullet
8 Eid al-Fitr Akufo-Addo promises to protect all faiths in...bullet
9 Western Region Class one pupil killed by guard dog while...bullet
10 Visa row: Ablakwa condemns US embassy over new visa policybullet

Top Videos

1 Lynched Soldier Listen to the man who hit Capt. Mahama's head with a blockbullet
2 Video Police officer attacked at Flagstaff Housebullet
3 Capt. Mahama's Death The account of this 10-year-old will leave you...bullet
4 Prophecy Hundreds will die in floods in 2017 – Prophet revealsbullet
5 Lynched Soldier Residents of Denkyira-Obuasi mourn Maj. Mahamabullet
6 Meet "The Beast" President Obama's Cadillac that's more tank...bullet
7 Ghana@60 Agya Koo embarrassed Ghana at Independence Day -...bullet
8 In Zimbabwe President Mugabe’s 70 year-old aide marries...bullet
9 Nigerians stop deportation of chained compatriot in KLM...bullet
10 Refugee Ghanaian to lose fingers after 7-hour trek to...bullet

News