The Public Utilities Regulatory Commission (PURC) has announced a 14.75% upward adjustment in average end-user electricity tariffs and a 4.02% increase in water tariffs, effective immediately.
This latest review, disclosed in a statement on Friday, comes under the Commission’s quarterly tariff adjustment mechanism, aimed at aligning utility rates with economic variables including the Cedi/US dollar exchange rate, inflation, electricity generation mix, and fuel costs—particularly natural gas used in power production.
According to the PURC, the increases are necessary to prevent either over-recovery or under-recovery of revenue by utility service providers. It emphasized that while the new rates are significant, they are still restrained compared to what full cost recovery would require.
“The Commission has exercised restraint in the level of increase granted… the adjustments could have been more severe,” the statement noted. The Commission also cited the under-recovery of revenue as a critical challenge for utility companies, warning that continued financial shortfalls could cripple their operations.
This is the second utility hike in under a year. In July 2024, electricity tariffs were increased by 4.22% and water by 1.18%. The cumulative effect means that within less than 12 months, consumers have faced an 18.97% rise in electricity costs and a 5.20% increase in water tariffs.
The development is expected to intensify pressure on already burdened households and businesses, further fueling public concern over cost-of-living challenges.
