Dr. Ishmael Ackah
The Public Utilities Regulatory Commission (PURC) will implement 4.22 percent increase in electricity tariffs for all non-lifeline residential customers starting September 1, 2023.
A statement issued by the PURC and signed by the Executive Secretary, Dr. Ishmael Ackah, said the decision comes after a review of the third quarter of 2023 by the company to ensure that the real value of the cost of providing utility services is upheld.
“The Commission after extensive deliberations and analysis has approved a no-increment or change in end-user electricity tariff for life line customers, industrial customers and non residential customers (hairdressing saloons, barbering shops, chop bars, tailoring and dressing making shops, cold stores and other small and medium scale businesses (effective September, 01, 2023).
The Commission, however, approved a 4.22% increase across board in the average end-user electricity tariff for non-lifeline residential customers,” it said.
In terms of water tariffs, the lifeline customers will also benefit from a freeze on water tariff adjustments, with no increase or alteration (0%) in their rates, but has approved a 1.18 percent increase in tariffs for all other categories of water consumers.
The new tariff structure maintains the existing rates for lifeline customers, as well as for industrial customers and non-residential entities like hairdressing salons, barbering shops, chops bars, tailoring and dress-making shops, cold stores, and other small- to medium-scale businesses.
The Quarterly Tariff Review according to the PURC, seeks to track and incorporate changes in key factors used in determining natural gas and electricity tariffs as well as to ensure that the utilities are financially viable to sustain supply of services while reducing the burden on consumers especially lifeline customers.
He stated, “To reduce cross subsidization between industrial customers and residential customers. This is to address high electricity cost for industrial customers which have been repeatedly identified in the AGI business barometer as a key challenge affecting the competitiveness of Ghanaian businesses in the market place”.
It also expressed gratitude to all stakeholders for their support as it continues to implement quarterly tariff reviews in accordance with its rate setting guidelines for quarterly review of natural gas, electricity, and water tariffs.
“The Commission wishes to assure its stakeholders that it will continue to monitor the operations of the service providers to ensure quality delivery of service while balancing the interests of Consumers and Utility Service Providers,” it added.
By Ebenezer K. Amponsah