Economy & Businеss
A crucial move has been made by the PURC in Ghana through an announcement to review utility tariffs for this quarter. Effective from 1 December 2023 and ending on 29 February 2024, electricity tariffs will decrease by 1.52% while water tariffs will witness a slight increase at 0.34 %. The adjustment indicates the commitment of the commission in ensuring a balance between the economic welfare of consumers and the financial viability of utility service providers.
According to the report by Daily Graphic, the decision to revise electricity tariffs is one among the four steps in PURC’s biannual adjustment process. In this situation, an in-depth analysis is made on several uncontrollable variables, including exchange rate between the USD and GHC, domestic inflation rates, electricity generation mix and fuel cost especially natural gas.
Striking a balance between Financial viability and Consumer welfare.
According to one statement of Dr. Ismail Ackah, executive secretary of the PURC, these tariff adjustments are meant to preserve the real value of the tariffs. This way, the utility providers remain financially sound and capable of providing quality services to the public. Besides, the commission has considered the overall competitive nature of industries and general welfare of Ghanaians to have taken a comprehensive approach on economic well being.
A reduction in electricity tariffs is a blessing to consumers, especially considering the economic hardships experienced across the globe today. The reduction of electric rates by 1.52% will lower the financial burden on households and businesses, and thereby contribute to economic stability and growth.
However, an incremental increase in water tariffs underscores the need to support sustainable operation with water utilities. Though modest, the 0.34% increase is essential for covering the escalating operational costs as well as for investing resources into improving water infrastructure.
The PURC’s tariff adjustments are a response to the ever-changing global economic environment, particularly exchange rate fluctuations and fuel prices. These factors affect the cost of electric generation and supplying water, hence they require periodical reviews in order to bring them harmonious with current economic reality.
While implementing the tariff adjustments in Ghana, there is a continued effort towards promoting economic resilience and protecting consumer interest. Strategically, PURC’s balances between the utility providers and consumers on fairness.
The coming months will be significant for the assessments of these changes on the Ghanaian economy and the everyday lives of citizens. It is hoped that these measures would facilitate stability and prosperity in the economic landscape of Ghana.
