The Public Utilities Regulatory Commission (PURC) announced on Saturday, September 28, a 3.02% increase in electricity tariffs and a 1.86% rise in water tariffs for the third quarter of 2024. These adjustments are set to take effect from October 1, 2024. The PURC attributed the upward revision to several economic factors, including exchange rate fluctuations, inflation, and rising gas prices.
According to the PURC, the increase is driven by the cost of gas, inflationary pressures, and changes in exchange rates, all of which have impacted the cost of utility services in Ghana. This marks another adjustment following previous hikes earlier in the year, aimed at ensuring the sustainability of service delivery.
The Ghana Union of Traders Association (GUTA) has expressed concerns about the timing and justification of the tariff increase. Joseph Paddy, the Public Relations Officer for GUTA, voiced fears that the hike would exacerbate the already high cost of living in the country. He questioned the impact of exchange rate instability on the decision and urged the PURC to reconsider the timing of the adjustment.
Paddy warned that the new tariffs could place an additional burden on Ghanaians, who are already struggling with inflation and rising living costs. He added, “Even the timing is also a challenge,” highlighting the pressures on households and businesses amid ongoing economic instability.
The PURC has yet to respond to these concerns, but the increases are set to take effect as scheduled on October 1.