The Public Utilities Regulatory Commission (PURC) has announced an 18.36% increase in electricity and natural gas tariffs for all consumer groups following its review of the second quarter of 2023.
This decision was made in order to prevent prolonged power outages and the associated negative impacts on employment and livelihoods, while also trying to minimize the effect of the rate hike on customers.
Implementation of the new rate takes effect from June 1.
The Quarterly Tariff Review Mechanism was employed to take into account the changes in the key factors used to determine electricity and natural gas rates.
The PURC has attributed the recent increase in utility prices to the Ghana Cedis/US Dollar exchange rate, inflation, electricity generation mix, and the Weighted Average Cost of Natural Gas (WACOG).
“This review has become necessary to maintain the real value of the cost of supply of the utility services and to ensure that the utility companies do not under or over-recover costs."
This was revealed in a statement signed by the Commission's Executive Secretary, Ishmael Ackah.
“While under-recovery has negative implications for the ability of the companies to supply service to consumers, and has the potential of causing outages of electricity, over-recovery unnecessarily overburdens consumers of electricity."
To ensure that utility companies are neither under- or over-recovering their costs, the PURC believes that a review of prices is necessary.
They state that under-recovery has the potential to lead to electricity outages, while over-recovery would be an undue burden on electricity consumers.
Latest Stories
-
I’ll win TGMA Artiste of the Year at the right time – Kofi Kinaata
15 mins -
Meet Fred Amugi’s 100-year-old mother
31 mins -
Brazil great Marta to retire from international duty
1 hour -
Otto Addo was forced to accept Black Stars coaching job – Mohammed Polo
1 hour -
Karim Zito qualified to be Black Stars head coach – Mohammed Polo
1 hour -
Platinum Cup makes return on April 27
1 hour -
MoE is not changing uniforms or re-painting all public schools – Kwasi Kwarteng clarifies
2 hours -
16th Africa Aquatics Swimming Championships: Nubia and Harry to represent Ghana in Angola
2 hours -
Four defendants in NDA case by OSP open defence today
2 hours -
GFA commissions first set of floodlights at Ghanaman Soccer Centre of Excellence
2 hours -
Basic public school uniform change an initiative, not a policy – Kwasi Kwarteng
2 hours -
Bawumia appeals for peace in Gonjaland, donates GHȼ100K, bull
2 hours -
Drake: AI Tupac track gone from rapper’s Instagram after legal row
3 hours -
Repainting schools, changing uniforms a misplaced priority – Joy FM listeners on rebranding of basic public schools
3 hours -
UEFA U-16 Tournament: Black Starlets bounce back with 5-1 win over Serbia
3 hours