Water tariff goes up by 15%
The Public Utilities and Regulatory Commission (PURC) has announced a 15 per cent increase in water tariffs, effective today, July 1, 2015.
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However, due to the current power situation, the commission has deferred the increment in electricity, which was supposed to go up by 51.73 per cent for the third quarter of 2015.
The country is currently going through power rationing as a result of the energy crisis.
In a statement signed by the Executive Secretary of the PURC, Mr Samuel Kwadwo Sarpong, and issued in Accra yesterday, the commission indicated that the increment in water was based on the expansion of water infrastructure and considerable improvement in supply.
Second quarter
In April 2015, there was an increase of 31.73 per cent for electricity and 21.30 per cent for water for the second quarter of 2015.
However, the commission, using the Decision Variable, decided to pass on a minimal tariff increase of 2.63 per cent for electricity and 1.06 per cent for water.
It explained that the “action has been necessitated by the current electricity situation where consumers are spending extra income on the acquisition of other alternative sources of electricity”.
Third quarter
For the third quarter, the PURC said it “has decided to defer the increase for electricity due to the current electricity supply situation but has decided to pass on the adjustment for water because of the notable expansion in water infrastructure and considerable improvement in supply”.
Using the Automatic Adjustment Formula, it said the exchange rate of the cedi, rate of inflation, fuel mix and power purchase cost were some factors considered in the third quarter adjustment.
Tariff review
It further noted that the PURC was embarking on a major tariff review exercise from July to October to review the utility rating settings, considering additional electricity generation.
“The commission, under the Public Utilities Regulatory Commission Act 1997 (Act 538), has the mandate to examine and approve rates chargeable for the provision of utility services, while at the same time protecting the interest of consumers and ensuring the financial viability of the utility service providers.“As part of the major tariff review process, the cost of additional generation of electricity, which is not currently included in the existing end user tariff, is to be examined, in addition to the cost components of the existing state-owned utility companies, as well as existing independent power producers of electricity and water,” it said.
The state-owned utility companies are the Volta River Authority (VRA), the Electricity Company of Ghana (ECG), the Ghana Grid Company Limited (GRIDCo) and the Northern Electricity Distribution Company (NEDCo).
During the process, the statement indicated, the public would be given the opportunity to make submissions for the final decision on the outcome of the review process.
Read the full press statement here