The Public Regulatory and Utilities Commission (PURC) has increased electricity and water tariffs by 2.63 and 1.06% respectively.
The new prices will take effect from April, 1st, 2015.
The PURC clarified that in calculating the tariffs for the second quarter Automatic Adjustment Forumla, the Commission arrived at an actual increase of 31.73 cumulative for electricity and 21.30 for water but the Commission using the Decision Variable decided to pass on a minimal tariff increase.
The Commission further explained that the “action has been necessitated by the current electricity situation where consumers are spending extra income on the acquisition of other alternative sources of electricity.”
“This increase is meant to preserve the current load share situation by assisting the Elctricity Distribution Companies to maintain its network under the current circumstances to avoid an immediate collapse of the distribution network.”
The PURC in March 2014 increased tariffs for electricity and water to 12.09 percent and 6.05 percent respectively for the second quarter of that year using the Automatic Adjustment Formula.
Factors considered in computing the Automatic Adjustment Forumla
Ghana Cedis Exchange Rate
Inflation
Fuel Mix
Generation Mix(Hydro and Thermal)
Power Purchase Cost
Demand Forecast
–
By: Marian Efe Ansah/citifmonline.com/Ghana
Follow @EfeAnsah