Utility Tariffs for electricity and water are expected to go up today September 1, 2022.
Whilst electricity will go up by 27.15 percent, water price will increase by 21.55 percent.
Last month, the Public Utilities Regulatory Commission (PURC) announced these tariff increament.
The PURC was of the view that it acknowledged the economic difficulties faced by consumers but said without these tariff increases, the utility providers may not meet their mandate.
The Commission believes that some level of increament in utility tariffs were inevitable if the nation was to avoid another power crisis and its attendant effects including job losses.
“In balancing interests of the service providers and consumers, the PURC acknowledged that the very economic variables that have occasioned the steep increases proposed by the service providers also affect the consumers.
“The Commission, however, admitted that some level of increases in utility tariffs were inevitable if the nation was to avoid another power crisis and its attendant effects including job losses.
PURC, therefore, decided to increase the average end-user tariff for electricity by 27.15% and water by 21.55%, effectively September 1,” it said.
The Electricity Company of Ghana (ECG) had earlier demanded 148 percent increase in tariff.
The proposal from the power distributor, submitted to the PURC requested the increment to cover the period 2019 and 2022.
It also proposed an average increase of 7.6 percent in tariff over the next four years to cover Distribution Service Charges.
On the other hand, the Ghana Water Company Limited also demanded 334 percent increase in tariffs.
The GWCL insisted that approved tariffs over the years have not been fully cost-reflective. But consumers of water and electricity disagreed. They argued that proposals for utility tariffs are too high.
According to the consumers, they do not agree that the increase in utility tariff is commensurate with the services rendered.
By Vincent Kubi