In a move that will impact households across Ghana, the Public Utilities Regulatory Commission (PURC) has given the green light to a significant increase in electricity and water tariffs.
The adjustments, set to take effect from September 1, 2023, have been met with mixed reactions as consumers brace themselves for higher utility bills.
The decision comes after the third-quarter tariff review window and marks a 4.22% surge in electricity tariffs for non-lifeline residential customers.
Water tariffs for all non-lifeline water consumers are also slated to rise by 1.8%.
The announcement was made through an official statement dated August 22, 2023, with Dr. Ishmael Ackah, the Executive Secretary of PURC, underscoring that this move was aimed at ensuring a balance between consumer interests and the operational viability of utility companies, especially amidst the current challenging economic climate.
Dr. Ackah explained, "The upward adjustment was done in the best interest of the consumer while ensuring that the utility companies stay afloat in these challenging economic times."
The commission's decision reflects a careful consideration of various factors, including the persistent inflation rates and the input provided by the Ghana Association of Industries (AGI).
The goal is to maintain the financial health of the utility sector while minimizing the burden on consumers who are already navigating economic uncertainties.
The PURC's perspective on this decision is articulated in their statement, where they state,
"The factors that guided it, according to the release, were inflation, the input of the Ghana Association of Industries (AGI), and the ability of the utility companies to survive with regard to the prevailing economic times."
This approach aims to strike a delicate balance between safeguarding the consumer's interests, ensuring the utility companies' stability, and acknowledging the prevailing economic conditions in the country.
While the utility tariff hike has generated concerns among citizens already grappling with economic challenges, some experts argue that such adjustments are crucial to maintaining the provision of essential services.
The increase, according to these experts, helps the utility companies continue their operations, avoid service disruptions, and invest in improving service quality.
Below is the release;
