Water and electricity tariffs to go up by 5.16% and 5.84% effective July 1

An upward review of water and electricity tariffs for the third quarter of 2024 has been issued by the Public Utilities Regulatory Commission (PURC).

The new tariffs will go into effect on July 1, 2024, and will increase water prices by 5.16 percent for all customer classes, electricity prices by 3.45 percent for lifeline customers (0–30 kWh), and 5.84 percent for all other residential customers who are not in the lifeline category bracket (31 kWh and above) as well as non-residential buyers.

A 4.92 percent rise in the industrial category’s electricity tariff for the time under consideration was also approved by the commission.

A statement issued on Friday, May 31, 2024, and signed by the Executive Secretary of the PURC, Dr. Ishmael Ackah, said the new tariff review was occasioned by several factors, including the cedi depreciation, rising inflation, the cost of fuel, and the electricity generation mix.

“The commission wishes to inform consumers of electricity and water that there has been a review of the existing tariffs, to take effect from July 1, 2024, to September 30, 2024,” he said.

The commission’s Quarterly Tariff Review Mechanism tracks key uncontrollable factors like exchange rates, inflation, electricity generation mix, and fuel costs.

These reviews aim to maintain tariff value, keep utility service providers financially viable, and consider industry competitiveness and Ghanaian living conditions, according to the PURC.

“Having considered all the underlying factors, the commission wishes to announce that there will be a 3.45 percent increase in electricity tariffs for lifeline consumers (0–30 kWh) and a 5.84 percent increase for all other residential consumers who are not part of the lifeline category bracket (31 kWh and above) as well as the non-residential category.’

“The industrial category will experience an increase in electricity tariffs of 4.92 percent. Water tariffs will experience an increase of 5.16 percent for all customer classes for the period under review.”

Dr. Ackah also reported a revenue requirement of GH¢5.67 billion for Q1 2024, increasing to GH¢6.81 billion in Q2, resulting in a GH¢1.14 billion increase.