Depreciation of the cedi and high cost of fuel caused an increase in utility rates: PURC

The Public Utilities Regulatory Commission (PURC) has attributed its upward adjustment of utility rates to factors such as the depreciation of the local currency and the high cost of fuel.

The PURC announced on May 31 an increase in water and electricity rates for the second quarter of 2024, effective from July 1 to September 20, 2024.

According to the commission, residential electricity consumers will see an upward adjustment in rates of 5.84%.

The May 31 statement added that rates for consumers of vital services will experience an increase of 3.45%.

…there will be a 3.45% increase in electricity rates for lifeline consumers (0-30kWh); 5.84% increase for all other residential consumers who are not part of the lifeline category group (31 kWh and above), as well as for the non-residential category,” the PURC said.

However, the industrial category “will experience an increase in electricity rates of 4.92%.”

As for water, Ghanaians will see “an increase of 5.16% for all classes of customers during the period analyzed.”

In a statement signed by PURC Executive Secretary Ishmael Ackah, the reviews were carried out in accordance with the Commission’s Quarterly Tariff Review Mechanism, which tracks and incorporates movements in key uncontrollable factors, namely the type of exchange between the US dollar and the Ghana cedi,
the inflation rate, the electricity generation mix and the cost of fuel, mainly natural gas.

The commission says it also considered the competitiveness of the industries and the general living conditions of Ghanaians in arriving at this review.

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