Utility rate increases will go into effect today, September 1. (1). Electricity and water rates are set to rise by 27.15 percent and 21.55 percent, respectively.
Last month, the Public Utilities Regulatory Commission (PURC) announced the pricing increases.
The PURC acknowledged consumers’ economic challenges, but stated that without these rate increases, electricity companies may fail to achieve their mandate.
However, the Commission acknowledged that some amount of rise in utility bills was unavoidable if the country was to prevent another power crisis and its accompanying impacts, including job losses.
The Electricity Company of Ghana, ECG had earlier demanded 148 percent increase in tariff.
The proposal from the power distributor, submitted to the PURC requested the increment to cover the period 2019 and 2022.
It also proposed an average increase of 7.6 percent in tariff over the next four years to cover Distribution Service Charges.
On the other hand, the Ghana Water Company Limited also demanded 334 percent increase in tariffs.
The GWCL insisted that approved tariffs over the years have not been fully cost-reflective. But consumers of water and electricity disagreed. They argued that proposals for utility tariffs are too high.
According to the consumers, they do not agree that the increase in utility tariff is commensurate with the services rendered.