Water, Electricity Prices Go Up

Water and Electricity tariffs have been increased by 4.54 percent and 6.54 percent respectively.

A statement issued by the Public Utilities and Regulatory Commission (PURC) in Accra yesterday and signed by Chairman of the Commission, Dr Emmanuel Annan announced the decision for the fourth quarter of 2014, which took effect on Tuesday, September 30, 2014.

The announcement by PURC comes at the time when the power providers in the country have embarked on the load-shedding exercise.

The automatic adjustment formula, which is used in determining utility prices, is driven by variables like the exchange rate of the cedi, inflation, price of crude oil and natural gas, fuel mix (crude oil, natural gas and distillate fuel), generation mix (hydro and thermal), power purchase cost, demand forecast, chemical cost (water) and electricity

cost (water).
In view of this, PURC said 'there should be a marginal increase in electricity tariffs to help maintain the current situation of deficiency in supply, which has resulted in a load shedding.'

Though water tariffs also went up by 4.54 per cent, the Commission suspended application of that figure 'until such a time that certain regulatory requirements that protect consumers are met.”

It said the tariff increases for the October - December quarter was driven by shift in the overdependence on crude oil as a result of challenges with the West Africa Gas Pipeline and low volumes of water both in the Akosombo and Kpong hydroelectric dams.'

'The Commission, also in its deliberations, considered the current inadequate electricity supply situation which has resulted in load shedding in the country and its impact on consumers and customers of electricity and water.'

The chairman of the PURC was hopeful Ghana would be able to address challenges relating to the supply of electricity when the Atuabo Gas Plant comes on stream.

BY Charles Takyi-Boadu