The Public Utilities Regulatory Commission (PURC) has announced a tariff adjustment set to take effect from April 01 to June 30, 2024, following a comprehensive review of existing electricity and water tariffs.
On February 28, the commission announced a minor decrease in electricity tariffs for residential consumers, while maintaining the current rates for lifeline consumers (0-30 kWh) and residential consumers using 0-300 kWh.
The Executive Secretary, Dr. Ishmael Ackah, has revealed that the review was conducted in accordance with the Commission’s Quarterly Tariff Review (QTR) Mechanism, which considers key uncontrollable factors such as exchange rates, inflation rates, electricity generation mix, and fuel costs.
Dr. Ackah emphasized that the primary objective of the QTR is to ensure that utilities recover their revenues, covering operational and maintenance costs, capital investments, and other regulatory expenses.
He highlighted that the April to June 2024 QTR aims to reduce existing tariff bands for residential, non-residential, and industrial customers, with the goal of minimizing cross-subsidies and rewarding productive electricity usage.
“While some residential and High Voltage (HV) customers will experience reductions in their electricity tariffs, Steel Companies customer groups will see a significant increase of more than 30% in their tariffs”.
Dr. Ackah clarified that despite tariff adjustments, certain customer groups, including lifeline tariff customers and Low Voltage (LV) and Mines customer groups, will not undergo changes in their tariffs.
Dr. Ackah assured the public that the PURC is committed to the financial sustainability of utilities and the welfare of consumers.
“He clarified that tariff adjustments do not automatically alleviate energy sector debts or guarantee payments to Independent Power Producers (IPPs), as the approved tariffs must first be collected by distribution companies for such payments to be made.”
The PURC’s decision to adjust tariffs reflects a balanced approach aimed at ensuring fair pricing, financial stability, and sustainability within the energy sector.
Read the full statement below
Click here to read the release ES-Press-release-2024-Q1-QTR_ (1)
