The Public Utilities Regulatory Commission (PURC) has announced an upward adjustment in utility tariffs, with electricity increasing by 14.75% and water by 4.02% across all consumer categories.
In a statement issued yesterday, the Commission explained that the increment forms part of its quarterly tariff review mechanism, guided by its rate-setting framework for the periodic adjustment of natural gas, electricity, and water tariffs.
The PURC cited four primary factors influencing the latest review: the Cedi/US dollar exchange rate, inflation, the electricity generation mix, and the cost of fuel—particularly natural gas—used in electricity production. The adjustments, it stated, are necessary to prevent both over-recovery and under-recovery of revenue by utility providers.
This marks the second upward adjustment in less than a year. In July last year, the Commission raised electricity tariffs by 4.22% and water tariffs by 1.18%. The latest increase brings the cumulative rise in electricity tariffs to 18.97% and water tariffs to 5.20% within the past year—adding further strain on already stretched household finances.
The PURC defended the new tariffs by pointing to significant revenue shortfalls faced by utility companies, describing the situation as one of severe financial “bleeding.” It cautioned that without these adjustments, some utility providers risk collapse.
However, the Commission emphasized that it exercised restraint, noting that the increases could have been steeper had it sought to recover all outstanding debts from previous quarters.
