The Public Utility Regulatory Commission (PURC) will issue its quarterly tariff adjustment later this week.
The review is set to go into effect on January 1, 2023.
Tariffs are adjusted by the PURC to reflect changes in macroeconomic indicators such as inflation and the exchange rate.
The regulatory authority’s examination will result in either an upward or downward adjustment.
Head of Research and Cooperate Affairs at the PURC, Dr. Eric Obutey tells Citi News: “The cedi’s rate against the dollar and inflation are some of the factors we try to correct using the quarterly tariff adjustments. We should be expecting an announcement before the close of 2022 because it is supposed to take effect from the 1st of January.”
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The PURC announced earlier this year a 27.15% rise in energy tariffs and a 21.55% increase in water tariffs, both starting September 1, 2022.
This came after utility corporations such as the Electricity Company of Ghana and the Ghana Water Company Limited announced rate hikes of 148% and 334%, respectively.
Despite the rising cost of living, the authorities justified an increase in charges.
It added that the decision was reached following thorough study and extensive talks with industry participants, as well as an evaluation of consumer economic situations.
The ECG recommended that its prices be increased by 148% in 2022, with 7.6% average changes from 2023 through 2026.
According to the ECG, the rapid increase was caused by the disparity between the actual cost recovery tariff and the PURC-approved rates, as well as the cost of completed projects.
The GWCL further said that while the average rate per cubic metre in 2019 was 1.27 USD, it was cut to USD 1.13 due to cedi depreciation.
The GWCL stated that this has hampered its capacity to repair and replace ageing and outdated equipment and pipes.
SOURCE: CITINEWS
