The Public Utility Regulatory Commission (PURC) has announced adjustments in utility tariffs for the third quarter of the year, effective September 1, 2023.
For electricity, there was no increment in end-user tariffs for lifeline, industrial, and non-residential customers (hairdressing saloons, barbering shops, chop bars, tailoring and dress-making shops, cold stores, and other small and medium-scale businesses).
However, there would be a 4.22 per cent increase across board for non-lifeline residential electricity customers.
In the case of water, lifeline customers will not experience increment, but there would be a 1.18 per cent increase in tariff for all other water customer groups.
This was in the statement on the 2023 Third Quarter Tariff Review Decision for Electricity, Water, and Natural Gas, signed and issued by the PURC Executive Secretary, Dr Ishmael Ackah, in Accra, yesterday.
The statement said the adjustment was in line with the Quarterly Tariff Review Mechanism and Guidelines as communicated in the Commission’s August, 2022 major tariff review decision.
The PURC said the Third Quarter Tariff Review became necessary to crack and incorporate changes in key factors used in determining electricity, water, and natural gas tariffs.
The statement said these factors are; the Ghana Cedi/US Dollar exchange rate, inflation, electricity generation mix and the weighted average cost of natural gas, adding that the incorporation of the changes in these variables was crucial to maintain the real value of cost of supply of utility services.
The PURC said another reason for the review was to reduce the cross subsidisation between industrial customers and residential customers in a bid to address the high electricity cost for industrial customers, which has been repeatedly identified in the AGI Business Barometer as a key challenge affecting the competiveness of Ghanaian businesses in the global market place.
“Thus, this reduction will support the growth and competitiveness of industry, and as part of a significant contribution towards Ghana’s industrialisation drive, and enhance opportunities for job creation,” the statement said.
It said “To ensure that the utilities are financially viable to sustain supply of services, while reducing the burden on consumers, especially lifeline customers”.
Explaining the tariff decision, the PURC said it was guided in its decisions by the ultimate interest of consumers, the financial viability of the utilities and the general economic conditions prevailing in the country.
On variables considered in the determination of the adjustment, the statement said, the projected hydro-thermal generation mix for this quarter was maintained at 29. 01 per cent for Hydro and 70.99 per cent for Thermal which was used in the 2023 second quarter tariff decision.
The statement said the Ghana Cedi-US Dollar Exchange Rate was also considered, explaining that a weighted average Ghana Cedi-US Dollar Exchange Rate of GH¢11.4929/US$1 was applied for the Third Quarter 2023.
This rate, it said, included an exchange rate projection of GH¢ 11. 0087/US$ 1 for the third quarter, and an under-recovery of 0.4842/US$ 1 from the previous quarters.
In the case of Inflation Rate , the PURC said the projected rate of 10.49 per cent was used for this quarter in comparison with 12.62 per cent used for the second quarter of 2023, indicating an average projected inflation rate variance of -2.13 per cent.
BY TIMES REPORTER
