Electricity and water tariffs are to go up in Ghana by 103 and 96 percent respectively from May.
The Public Utilities Regulatory Commission (PURC), which fixes and regulates tariffs, said Saturday it had rejected the more than 300 percent hike demanded by the Volta River Authority, Electricity Company of Ghana and Ghana Water Company.
A statement in Accra by the PURC Executive Secretary Stephen Adu, said residential consumers, who paid 4,000 cedis (about 55 cents) a month, will now pay a monthly flat rate of 7,800 cedis (about 1.08 dollars).
The utility companies had argued that the current tariffs approved in 1998 were below their production costs.
Consumers on the other hand, are clamouring for improved services and calling on the companies to end corruption and wastage.
The Commission justified the tariff increases citing the inability of the companies to meet their production costs and the adverse effects of the macro-economic environment last year.
It, however, explained that a phased approach would be adopted to attain economic rates and improved services.
The Commission asked Ghana Water Company to embark on a comprehensive rationing programme to ease water shortage.
Water Tariff Increased by 96 per cent
-by GNAThe Public Utilities Regulatory Commission ( PURC) has approved an average increase of 96 per cent on water tariffs with effect from May.
A release issued in Accra on Friday and signed by its Executive Secretary, Mr Stephen N Adu said the increase is limited in the light of several adverse factors affecting the utility in particular and the inability of the Ghana Water Company Limited (GWCL) to meet its reasonable production cost.
It said metered domestic customers who consume up to 10,000 litres per month will now pay a "lifeline" rate of 990 cedis per 1,000 litres, an increase of 98 per cent.
This compares with a rate of 5,500 per 1,000 litres an increase of 1,000 per cent requested by GWCL.
Other domestic customers who consume more than 10,000 litres per month will now pay rate increases of between 98 per cent to 177 per cent. GWCL proposed between 340 per cent to 473 per cent.
Commercial and Industrial customers will pay 4,000 cedis per 1,000 litres. This represents an increase between 79 per cent and 120 per cent as against GWCL proposal of between 281 per cent and 312 per cent.
overnment Departments and Institutions are to pay 3,600 cedis per 1,000 litres, an increase of 131 per cent. GWCL proposed 400 percent.
Unmetered premises will pay a minimum flat rate of 9,900 cedis instead of 55,000 cedis proposed by GWCL. Boreholes, wells and hand pumps users will now pay a flat rate of 3,000 per house per month.
Consumers who obtain water from standpipes will now pay 1,000 Cedis per 1,000 litres an increase of 150 percent instead of an increase of 1275 per cent proposed.
Reconnection fee has been revised as follows, 15,000 for domestic and 65,000 cedis for commercial/industrial consumers. This compares with 20,000 cedis and 80,000 cedis respectively proposed by GWCL.
The Commission said it considers the increase justifiable in the light of several adverse factors affecting the utility in particular, the inability of the company to meet its reasonable production costs and the adverse effect of the macro-economic environment on the utilities' operation last year.
It said PURC will adopt a "phased approach" towards attaining economic rates but this will be based on the attainment of stringent but realistic quality of service targets instituted with this increase for compliance by GWCL.
The release said PURC underscores the cardinal principle that increase in tariffs must be matched by a substantial improvement in quality of service.
The Commission asked GWCL to embark on a comprehensive rationing programme to be agreed with it, which will aim at achieving water supply at least twice a week to all areas or localities which are currently severely deprived of supply.
PURC suggested that the GWCL should streamline its operation on high unaccounted for water, currently at 51 per cent, which continues to affect its operational efficiency as well as cash flow position.
Commercial losses characterised by lapses in billing, metering and illegal connections should be reduced from the current estimate of 20 per cent to 16 per cent, the release said.
The Commission said the level of achievement of targets would be taken into account in the determination of any future increases in water rates.
