The Public Utilities Regulatory Commission (PURC) has increased end-user electricity tariff by 27.15% and water by 21.55%.
New tariffs take effect on September 1, 2022. According to the report, the increment was made as a proposal by the Electricity Company of Ghana (ECG) to increase electricity tariffs by up to 148 per cent, covering 2019 to 2022.
The management of the Ghana Water Company (GWCL) similarly suggested to the PURC that they raise the water rate.
A statement released by PURC reads;
The high increase in Distribution Service Charges was attributed to
The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase over 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 the first year (2022) than that of the subsequent years’ increases by an average of 2% from 2022 to 2026,” it added.
The management of ECG also indicated that its financial sustainability is important as it impacts on the entire energy sector.
“The financial sustainability of the electricity company of Ghana is important as it impacts on the entire energy sector.” “With the huge investment needs facing the distribution industry over the next five years, it is expected that the proposed tariff increases would inevitably be approved to sustain efficient and reliable electricity service.”