PURC urges utility providers to improve services as new tariffs take effect May 1

As Ghanaians prepare for the implementation of new utility tariffs beginning May 1, 2025, the Public Utilities Regulatory Commission (PURC) is calling on service providers to ensure quality and improved service delivery to meet consumer expectations.

The new tariff adjustment will see electricity charges increase by 14.75 per cent and water tariffs rise by 4.02 per cent. This review forms part of the PURC’s 2025 Quarterly Tariffs Mechanism (QTM), aimed at maintaining the financial viability and operational efficiency of utility companies.

Speaking at a media engagement in Tamale ahead of the rollout, Simon Ali, the Northern Regional Manager of PURC, emphasised that the modest increases in tariffs must result in improved services to justify the added cost to consumers.

“At PURC, we expect that once we increase the utility tariffs marginally, it should be commensurate with improved service delivery. Consumers should expect better services from their utility providers in the coming days,” he stated.

Mr Ali explained that the review was influenced by factors such as inflation, exchange rate fluctuations, fuel prices, and the generation mix. He noted that integrating these economic indicators into the tariff formula allows utilities to finance essential maintenance, upgrades, and expansion of infrastructure.

“Revenue is the bedrock for every utility to be efficient. Without adequate revenue, service providers cannot meet the quality benchmarks we require from them,” he said.

The PURC also urged the Northern Electricity Distribution Company (NEDCo) and other providers to step up revenue mobilisation efforts while strictly observing legal frameworks, particularly Legislative Instrument (L.I. 2413), to avoid unlawful disconnections.

“As we implement these new tariffs, NEDCo and other providers must conduct their revenue mobilisation within the law to avoid widespread unlawful disconnections,” Mr Ali cautioned.

He further revealed that PURC would enhance public education efforts and appealed to the media to support awareness campaigns on the importance of paying for utility services. “The financial viability of NEDCo, Ghana Water Company, and other utilities in the region is critical to ensuring they continue to provide the needed services to the public,” he added.

The PURC reiterated that the tariff adjustment, formerly known as the Automatic Adjustment Formula, is designed to protect the interests of both consumers and utility companies while promoting the long-term sustainability of Ghana’s utility sector.