Accra, Ghana: The Public Utilities Regulatory Commission (PURC) has announced a reduction in electricity tariffs by 1.52 percent for the fourth quarter of 2023, marking the only decrease in electricity rates for the year. Conversely, the Commission has increased the water tariff by 0.34 percent for the same period.
According to Ghana News Agency, this latest adjustment comes after a series of increases in electricity tariffs throughout the year, as reported by PURC. The new tariffs are set to take effect from December 01, 2023, to February 29, 2024. Under the revised rates, residential lifeline customers will see a decrease in their electricity rates from 0.6446 GHS/kWh to 0.6348 GHS/kWh starting December 1. Other residential customers will pay electricity rates ranging from 1.4057 GHS/kWh to 2.0271 GHS/kWh, with a service charge of 10.7309 GHS/kWh.
Non-residential customers will face rates between 1.2691 GHS/kWh and 2.0161 GHS/kWh, alongside a service charge of 12.4282 GHS/kWh. Special load tariff customers, including low, medium, and high voltage users, will have varying energy charges, with high voltage steel companies paying 1.1290 GHS/kWh and high voltage mines at 3.998573 GHS/kWh.
Regarding water tariffs, residential customers will experience a slight increase from 4.7239 GHS/m3 to 4.7401 GHS/m3. Non-residential and commercial customers will also see an increase in their water rates. Additionally, increased tariffs will be applied to sachet water producers, bottled water and drinks, industrial sectors, public institutions, public standpipes, ports, harbours, and bulk supply from December 1.
Dr. Ishmael Ackah, Executive Secretary of PURC, explained that the tariff review aimed to keep utility service providers financially viable while considering the competitiveness of industries and the general living conditions of Ghanaians. Factors such as the Ghana Cedi-US Dollar exchange rate, domestic inflation rate, electricity generation mix, and the cost of fuel, particularly natural gas, were taken into account for the adjustment.
For the fourth quarter of 2023, the Commission used a Weighted Average Ghana Cedi-US Dollar Exchange Rate of GHS11.9264, including an under-recovery of Ghs0.3792, and an average projected inflation rate of 40.43 percent. The applicable weighted average cost of gas at US$7.6426/MMBtu and the projected hydro-thermal generation mix were also considered.