Electricity, Water Tariffs Up Oct. 1

Electricity tariff will increased by 3.06% and a 1.86 % for water for the third quarter starting from Tuesday, October 1, 2024.

A statement signed and issued on Saturday September, 28, 2024 by the Executive Secretary of the Public Utilities and Regulatory Commission (PURC), Dr. Ishamael Ackah, said the upward review for electricity was largely due to the exchange rate effects on electricity generation cost.

“The Commission, having reviewed and analysed its findings from the data on the macroeconomic and market-driven variables approve a 3.02% increment in electricity tariffs, largely driven by exchange rate effect on electricity generation cost, and a 1.86% increment in water tariffs across board”.

It said cost recovery for the provision of utility services, and a reduction in the fiscal burden of government for subsidising the regulated electricity and natural gas sectors were some of the factors considered in the tariff review.

It indicated that the regulated utilities, including the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL)and Northern Electricity Distribution Company (NEDCo), are to adhere strictly to the PURC regulatory benchmark of 98% for revenue collection and consequently pay what is due all stakeholders in the value chain.

That directive it explained, is necessary for the sustainability of both the energy and water sectors.

“This  is also on account of the fact that the approved increment in both electricity and water tariffs is expected to translate into increased revenue requirements and collections for ECG, NEDCo, and GWL, with the following projected monthly revenues for the third quarter; GH¢2,024.5million for ECG, GH¢243.20 million for NEDCo, and GH¢227.40 million for GWL”.

“It is therefore the expectation of the Commission that this increased revenue requirement will be commensurate with the expected collections in accordance with the 98% revenue collection benchmark”, it added.

It further stated that the PURC is resolved to hold utility service providers to strict adherence to the Commission’s regulatory standards and benchmarks through continuous monitoring of operations to ensure value for money, efficiency in operations, and improved quality of service while thanking stakeholders for the continuous support.

Source:dailyguidenetwork.com