The Public Utilities Regulatory Commission (PURC) of Ghana has announced new increases in electricity and water tariffs by 3.02% and 1.86% respectively effective October 1, 2024.

This is part of the Commission's routine quarterly review process, which is conducted to ensure that tariffs reflect changes in key economic indicators, such as the US Dollar/Ghana Cedi exchange rate, inflation, and the cost of natural gas.

According to the PURC in a statement released on Saturday, September 28, the decision to increase the tariffs is driven by several factors, including a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024, as well as adjustments in inflation and gas costs amongst others.

These factors resulted in a revenue shortfall of GH₵173.98 million in the electricity sector and GH₵12.01 million in the water sector.

"Following the quarterly tariff review, the Commission wishes to inform the public that there will be a 3.02% increment in electricity tariffs and a 1.86% increment in water tariffs for the third quarter of 2024 for all categories of customers," part of the statement read.

The Commission explained that the increments are necessary to ensure the financial stability of utility providers, including the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and Northern Electricity Distribution Company (NEDCo) while balancing consumer protection.

PURC stressed that regulated utilities are expected to meet a revenue collection benchmark of 98%, which is critical to the sustainability of the energy and water sectors.

The statement assured consumers that it will continue to monitor the operations of utility companies to ensure value for money and improve service quality.