PURC increases water and electricity tariff by 21% and 27.15% respectively

PURC increases water and electricity tariff by 21% and 27.15% respectively

The Public Utilities and  Regulatory Commission (PURC) of Ghana has increased water and electricity tariffs by 21% and 27.15% respectively.

The Electricity Company of Ghana and the Ghana Water Company Limited had early on tabled a proposal before the PURC.

The revised tarrifs take effect on September 1.

On August 15th, the regulatory body made this announcement.

A proposal to increase electricity rates by up to 148% for the period of 2019 to 2022 was made to the PURC by the management of the Electricity Company of Ghana (ECG).

A tariff rise of 7.6% on average over the following four years was also suggested by the state power distributor to pay for Distribution Service Charges (DSC).

“The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase on the current DSC1 in 2022 and an average increase of 7.6% year on year from 2023 to 2026. “The high increase in the DSC1 for year 2022 could be attributed to the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs as well as the cost of completed projects”.

“Similarly, ECG’s proposed DSC2 shows a higher increase of 28.4% in first year (2022) while that of the subsequent years’ increases by an average of 2% from 2022 to 2026”.

The management of ECG also stated that the company’s financial stability is crucial because it affects the entire energy industry.

The management of the Ghana Water Company (GWCL) similarly suggested to the PURC raising the water rate.

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In their application, the GWCL said that over time, the approved prices had not fully reflected costs. According to GWCL, this has made it difficult for the company to generate enough money to support the urgently needed capital investment projects, which has resulted in an inadequate quality of service, the company stated.

PURC increases water and electricity tariff by 21% and 27.15% respectively 

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