Director of Research and Corporate Affairs at the Public Utilities Regulatory Commission (PURC) Dr Eric Kofi Obutey has stated that the tariff hike was forced by several economic and operational indicators.
According to Dr Eric Kofi Obutey, economic and operational indicators such as the exchange rate between the Ghana cedi and the US dollar, inflation projections, fuel costs and the current hydro-thermal generation mix led to the tariff hike.
The PURC in a statement announced that electricity and water tariffs will be increased by an average of 14.75%, while water tariffs will go up by 4.02%.
According to the statement the new tariffs, are set to take effect on May 3, 2025.
“The commission, in their decision today at 6pm reviewed upward the average end-user tariff for electricity by 14.75 per cent and also 4.02 per cent upward for water supply across board for all category of consumers,” he stated.
PURC in a statement issued on Friday, April 11 revealed the commission needs to recover 50% of outstanding revenue amounting to GHS976 million from previous quarters in 2024
The statement added the remaining 50% will be spread over subsequent quarters in 2025.
Dr Eric Kofi Obutey further revealed that a major tariff review is expected in the next quarter. which will factor in capital and operational expenses.
“As it stands now, I cannot determine in the next tariff window there will be an upward or downward review of tariff. I don’t really know how it will go. It will all depend on the factors that will come into play,” Dr. Obutey added.
Meanwhile, Dr Gideon Boako, the deputy Ranking Member on Parliament’s Finance Committee and MP for Tano North has told the Mahama government not to blame the electricity tariff increments on the IMF deal.
According to him, under IMF conditions, the Akufo-Addo-led administration managed electricity tariffs more efficiently in the interest of the Ghanaian people.
In a Facebook post on Saturday, 12 April, he criticised the current administration, saying, “The NDC government that promised to reduce the cost of living has, in their first four months, increased electricity tariffs by 14.75%.”
“Let this not be blamed on any IMF programme because the data above shows that under the same IMF programmes, the NPP managed the electricity tariffs better”, he added.
