Utility tariffs adjustment: 30% ECG tariff hike takes effect from February 1
Ghanaians are expected to pay more for utility tariffs from tomorrow, Wednesday, February 1, 2023 as the increment announced by the Public Utilities Regulatory Authority (PURC) takes effect.
The authority on January 16 increased electricity prices by about 30% and 8.3% for water effective February 1, 2023.
The PURC cited the cedi depreciation, soaring inflation and issues with power generation as reasons for approving the increment.
In a release issued by the Electricity Company of Ghana (ECG), the power distributor said it has catalogued all unit consumption and the expected cost in a “Reckoner” which clearly explains how the tariff is applied and billed.
“Please note that individual customers’ tariff percentage increase will depend on customer classification and consumption category. The Reckoner will be displayed at all our districts and customer service centres nationwide to guide customers on their electricity purchases.”
“ECG, by this announcement, assures our customers and stakeholders of our commitment to ensuring a smooth implementation of the new tariff.”
Meanwhile, the ECG said it has established customer help desks in all districts and customer service centres to assist, explain and reconcile any challenge.
However, the Institute for Energy Security (IES) had earlier called on the Public Utilities Regulatory Commission (PURC) to reconsider its decision on the increment in utility prices.
The IES in a statement issued on January 24 described the announcement as baseless.
PURC announced an increment in electricity prices by about 30% and 8.3% for water effective February 1, 2023.
The Commission cited the cedi depreciation, soaring inflation and issues with power generation as reasons for approving the increment.
“The IES however considers the assumption used by the PURC on the electricity generation mix of 26.11% hydro and 73.89% thermal as baseless. That assumption amounts to giving priority to thermal power generation over hydro, given that water elevation for Bui and Akosombo generating stations (GS) have improved Waterhead levels, and are capable of producing over 35% of power in 2023, in IES’ estimation,” IES said in a statement.
The IES anticipated a marginal increase in tariff if more hydroelectric power is produced from the generation mix.
“Although the IES has anticipated that the average electricity end-user tariff (GHe/kWh) covering residential, non-residential and special load tariff electricity consumers would see an increase within the year, the expected increase in tariff was anticipated to be marginal should more of hydro-electric power be produced from the generation mix,” the statement said.
It thus called on the PURC to reconsider the energy mix assumption used in the tariff adjustment.
“IES, therefore, calls on the PURC to reconsider the energy mix assumption used in the tariff adjustment (to reflect improved water-head levels) as that has an impact on the Weighted Average Cost of Gas, which has been reviewed to $6.0952/MMBtu from $5.9060MMBtu. This, the IES believes will bring some relief to already burdened citizens, and in the face of the current economic crisis”.