Electricity tariffs in Ghana increase by over 11%

The Public Utilities Regulatory Commission (PURC) in Ghana has approved an 11.17% tariff increase for electricity from July 1, this year.

Electricity tariffs in Ghana increase by over 11%

A press statement the regulatory body release on Friday, June 21, 2019, noted that the increase is for the recovery of total electricity revenue requirement for the regulated electricity market.

“In taking the above decisions, the Commission received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sectors: Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC), ” the statement said.

It further noted that “In line with the Commission's regulatory oversight mandate, extensive technical and financial analyses of the proposals were undertaken. The key objective of the tariff review was to sustain the financial viability of utility service providers as well as ensuring the delivery of quality service to consumers.”

As a major policy shift aimed at enhancing the competitiveness of Ghanaian industries, the commission said, it has eliminated the Maximum Demand Charge on industrial customers (Special Load Tariff-SLT Customers). It is expected that this policy will result in some 5LT customers experiencing savings in their overall electricity bills.

“This 2019-2020 Major Tariff Review Decision is the outcome of prudent cost review and effective monitoring undertaken by the Commission. Details of the approved electricity tariffs and the rationale for the decision will be published on the Commission's website,” the statement announced.

Background

In February this year, the PURC announced that the new electricity tariff would take effect from July 1, 2019, following a mandatory major tariff review consultation in January this year.

In a press statement issued on February 27, 2019, the Commission explained that its decision to postpone the announcement of the tariff to July was due to critical emerging issues in the sector which are expected to affect the final tariff setting.

Among others, it cited the emerging issues are related to the planned relocation of the Karpowership Plant resulting in fuel switch savings from Heavy Fuel Oil (HFO) to Natural Gas.

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