The Public Utilities Regulatory Commission (PURC) has announced a significant increase in electricity and water tariffs, effective May 3, 2025. This decision follows the Commission’s quarterly review process, aimed at ensuring revenue stability for utility providers while minimizing the financial burden on consumers.
The new rates reflect a 14.75% average increase in electricity tariffs and a 4.02% increase in water tariffs. According to the PURC, the adjustments are attributed to various factors, including fluctuations in the exchange rate between the Ghana cedi and the US dollar, inflation projections, fuel costs – particularly natural gas – and the current hydro-thermal generation mix.
A significant factor influencing the upward adjustment is the need to recover 50% of outstanding revenue, amounting to GHS976 million, from previous quarters in 2024. To ease the burden on consumers, the remaining 50% will be spread over subsequent quarters in 2025. The PURC emphasizes that these increments are crucial to addressing under-recoveries by utility companies, which could lead to service disruptions if left unaddressed.
Despite the increase, the Commission reassures its commitment to balancing the interests of both consumers and utility providers amid ongoing economic pressures. Full details of the tariff adjustments will be published in the government gazette and made available on the Commission’s official website.
