PURC announces increases in electricity and water tariffs effective February 1

ghanasummary.com

Jan 16, 2023 2:27 PM

PURC announces increases in electricity and water tariffs effective February 1

These were the Ghana Cedi/US Dollar exchange rate, inflation, generation mix and the weighted average cost of natural gas.

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Since the announcement of the major tariff in August 2022, these key variables underlying the rate setting have changed significantly

For example, the weighted average Ghana Cecil tiS Dollar exchange rate used for the major tariff review was GHS 7.5165 to the US Dollar

The projected weighted average Ghana Cedi US Dollar exchange rate used in First Quarter 2023 Tariff Analysis is GHS10.5421/USD”, PURC stressed.

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Together with exchange rate movements, this has negatively affected the ability of the utilities to purchase critical inputs required for their operations.

The Commission used a projected inflation rate of 42.63% in its tariff analysis for the First Quarter of 2023.

“The combined effect of the Cedi/US Dollar exchange rate, inflation and WACOG is that the utility companies are significantly under-recovering and require an upward adjustment of their tariffs in order to keep the lights on and water flowing”, the statement added.