The Public Utilities Regulatory Commission (PURC) has announced an upward review of water and electricity tariffs for the last quarter of the year.
The tariffs take effect from today, October 1, 2019.
The tariff for water has been increased by 2.22 percent, while electricity goes up by 5.94 percent.
A statement signed by the Executive Secretary, Mrs. Mami Dufie Ofori, said the increment was determined by the Automated Adjustment Formula (AAF), a tariff mechanism that seeks to track and incorporate movement in key determining factors to reflect the real cost of electricity and water quarterly.
According to the statement, this last quarter increment was done taking into consideration some factors, which include inflation, the cedi-US dollar exchange rate, the price of crude oil, natural gas and fuel mix.
The power purchase cost, demand forecast and the cost of electricity (a major cost component in water production) also influenced the latest increment.
In February 2019, the Ghana Grid Company (GRIDCo) demanded an adjustment from the current 2.5107 GP/kWh to 4.897 Gp/ kWh (exclusive of transmission losses), which is considered cost-reflective to cover Operating and Maintenance Costs, Depreciation, Finance Costs and a reasonable Return on Net Fixed Assets for 2019 while NEDCO proposed an increment from the existing 0.307555 per kWh to 0.43 in 2019.
The Commission also in July 2019, increased 11.17%. tariff for electricity.
The increment was due to tariff proposals from stakeholders including the Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Service Ghana Limited (PDS), Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited.
Related Posts
The Member of Parliament for Damango, Mutawakilu Adam has taken swipe at President Nana Addo Dankwa Akufo-Addo over the recent increase in electricity and water tariffs. He said Nana Addo must…- Alhaji Dr. Mahamudu Bawumia, the Vice President has justified the new increment of electricity tariffs by the Public Utilities and Regulatory Commission (PURC). He said the erstwhile National Democratic Congress…
- Government on Tuesday announced the suspension of the management of the Electricity Company of Ghana (ECG) by the Power Distribution Services (PDS) over suspected fraud. The announcement of the suspension…
- The price of Fanyogo and FanIce have been increased. The increment takes effect today, October 1, 2019. The price for Fanyogo and FanIce which was formally sold at GH¢1.00 will…
- The government of Ghana has handed back power distribution management to the Power Distribution Company (PDS) a week after suspending their license. The PDS per the new directive, they will…
