In a bid to align with its Quarterly Tariff Review Mechanism, the Public Utilities Regulatory Commission (PURC) of Ghana has declared a downward revision of electricity tariffs effective from December 1, 2023, through February 29, 2024.
This adjustment, amounting to a 1.52% decrease, is meticulously calibrated against factors such as the USD-Ghana Cedi exchange rate, domestic inflation rates, the electricity generation mix, and the cost of fuel—primarily driven by natural gas.
Conversely, the recalibration of water tariffs for the same period has taken an opposing trajectory, witnessing an increase of 0.34%.
PURC emphasizes that these adjustments are pivotal in preserving the true value of tariffs and ensuring the financial resilience of utility service providers. The quarterly reviews, as outlined by the Commission, extend beyond economic considerations, encompassing the competitiveness of industries and the general living conditions of the Ghanaian populace.
A statement from the PURC underscores that, “Adjustments to the existing electricity and water tariffs are undertaken on a quarterly basis to maintain the real value of the tariffs, thereby keeping the utility service providers financially viable to enable them to deliver on their services to consumers.”
Furthermore, the Commission acknowledges the support of stakeholders, affirming its commitment to the implementation of quarterly tariff reviews in accordance with Rate Setting Guidelines. The regulatory body vows to uphold stringent standards and benchmarks, ensuring utility service providers adhere to operational excellence while delivering optimal value for money and maintaining the highest quality of service.
The PURC’s proactive stance in regularly monitoring the operations of utility service providers underscores its dedication to a judicious balance between economic viability and consumer welfare, a delicate equilibrium that remains a focal point in the Commission’s regulatory mandate.
Read details of the PURC’s statement below: