Why Ghana Increased Water, Electricity Tariffs – PURC

Why Ghana Increased Water, Electricity Tariffs – PURC

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Ghanaian’s Public Utilities Regulatory Commission (PURC) has given the reason for the upward review it made on water and electricity tariffs to be a result of high prices of crude oil.

The PURC had on Monday, announced that water and electricity tariffs will go up effective today, October 1, 2019.

The Commission in a statement by its Executive Secretary, Mami Dufie Ofori said: “Following a review of Electricity and Water tariffs for the fourth quarter 2019 which is from October – December 2019, the Public Utilities Regulatory Commission wishes to announce for the information of consumers of electricity and water that there has been an upward adjustment in the existing tariffs. The increase is 5.94% for electricity tariffs and 2.22% on water tariffs across board for all customer categories effective October 1, 2019.

“The Automatic Adjustment Formula (AAF) is a tariff mechanism that seeks to track and incorporate movement in key determining factors to reflect the real cost of electricity and water quarterly.

“The following factors were considered in computing the automatic adjustment formula

Ghana Cedi-US Exchange rate; Inflation; Price of crude and natural gas; Fuel mix (crude, oil and natural gas; Generation mix (hydro and thermal; Power purchase cost; Electricity cost (a major cost component in water production).

The Commission, however, wishes to restate its commitment to embark on effective tariff monitoring programme aimed at providing the end-user improved quality of service,” the statement read;

Peace Obi


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