Ghana’s Electricity Tariff Increased by 11.7%

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The Public Utilities Regulatory Commission (PURC) has approved an 11.17% tariff increase for electricity from July.

The commission explained in a statement issued that the decision was taken after careful consideration of proposals by the various stakeholders in the power sector.

According to the Commission, as a major policy shift aimed at enhancing the competitiveness of Ghanaian industries, 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.

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 consultations 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.

The Commission also cited reductions in the price of natural gas are anticipated due to ongoing negotiations by the government as the reason for the postponement.

These matters are outside the purview of PURC but their outcomes are likely to have a measurable impact on the Commission’s decision.

The commission has also received a tariff proposal from the Ghana Water Company Limited (GWCL) and will announce the decision on the proposal “in due course”.

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