By: Mabel Adorkor Annanng
The Public Utilities Regulatory Commission, PURC has announced an 18.36 percent increase in electricity tariffs for all consumer groups for its second quarterly adjustment of 2023.
PURC explains that the decision was made in order to prevent prolonged power outages and the associated negative impacts on livelihoods and businesses while trying to minimize the effect of the rate hike on customers.
The Quarterly Tariff Review Mechanism was employed to take into account the changes in the key factors used to determine electricity and natural gas rates.
The new tariff is expected to take effect by June 1, 2023.
The PURC attributed the increase to the Cedis/ Dollar exchange rate, inflation, electricity generation mix, and the weighted average cost of natural gas as the factors that influenced the latest increment.
The Quarterly Tariff Review Mechanism was employed to take into account the changes in the key factors used to determine electricity and natural gas rates.
To ensure that the utility companies are neither under- or over-recovering their costs, the PURC believes that a review of prices is necessary.
