Ghana's Public Utilities Regulatory Commission (PURC) has announced that electricity and water tariffs would go up by 60 percent and 40 percent respectively, with effect from 1 August.
The hikes are on behalf of two utility Companies - Electricity Company of Ghana and Ghana Water Company.
Under the new tariff for electricity effective August, lifeline consumers will pay a block charge of 14,000 cedis for one to 50 units consumed. (8,100 cedis=1USD)). This amounts to 79 percent increase over 7,800 cedis block charge.
Other residential consumers who consume more than 50 units will not enjoy the "lifeline" charge, but will benefit from a 40-percent subsidy at the rate of 400 cedis per unit for the first 300 units. The increase in this category is 65 percent.
Consumption above 300 units will attract a tariff of 960 cedis per unit, a 68-percent increase over 570 cedis charged previously.
The statement said the first step in the newly approved two-step electricity tariff, grants the utilities an average end-user tariff of 60 percent, which is 85 percent for the Volta River Authority (VRA) and 35 percent for the Electricity Company of Ghana (ECG) for one year.
The second step grants the Companies an average end-user tariff increase of 12 percent effective March 2003 instead of the average increase of 105 percent requested by VRA and ECG for the year 2002.
Although the PURC would not undertake any major tariff review for at least two years, minor periodic corrective automatic adjustments for changes in generation mix, exchange rates and changes in world market crude oil prices would be made within the freeze period.
The increases in water tariff also follow the same two-step procedure with the average increase of 40 percent taking effect from August. The second step, an average increase of 12 percent, takes effect from March 2003.
The Ghana Water Company Limited had requested an average increase of 77 percent for the year 2002. Under the new regime, fairer tariffs have been given, especially to low-income consumers and other vulnerable groups.
The Commission gave a lifeline tariff of 20,000 litres a month, up from 10,000 litres a month. Domestic consumers who use up to 20,000 litres would benefit from a subsidy and pay at the rate of 3,000 cedis per 1,000 litres.
Ghana's Public Utilities Regulatory Commission (PURC) has announced that electricity and water tariffs would go up by 60 percent and 40 percent respectively, with effect from 1 August.
The hikes are on behalf of two utility Companies - Electricity Company of Ghana and Ghana Water Company.
Under the new tariff for electricity effective August, lifeline consumers will pay a block charge of 14,000 cedis for one to 50 units consumed. (8,100 cedis=1USD)). This amounts to 79 percent increase over 7,800 cedis block charge.
Other residential consumers who consume more than 50 units will not enjoy the "lifeline" charge, but will benefit from a 40-percent subsidy at the rate of 400 cedis per unit for the first 300 units. The increase in this category is 65 percent.
Consumption above 300 units will attract a tariff of 960 cedis per unit, a 68-percent increase over 570 cedis charged previously.
The statement said the first step in the newly approved two-step electricity tariff, grants the utilities an average end-user tariff of 60 percent, which is 85 percent for the Volta River Authority (VRA) and 35 percent for the Electricity Company of Ghana (ECG) for one year.
The second step grants the Companies an average end-user tariff increase of 12 percent effective March 2003 instead of the average increase of 105 percent requested by VRA and ECG for the year 2002.
Although the PURC would not undertake any major tariff review for at least two years, minor periodic corrective automatic adjustments for changes in generation mix, exchange rates and changes in world market crude oil prices would be made within the freeze period.
The increases in water tariff also follow the same two-step procedure with the average increase of 40 percent taking effect from August. The second step, an average increase of 12 percent, takes effect from March 2003.
The Ghana Water Company Limited had requested an average increase of 77 percent for the year 2002. Under the new regime, fairer tariffs have been given, especially to low-income consumers and other vulnerable groups.
The Commission gave a lifeline tariff of 20,000 litres a month, up from 10,000 litres a month. Domestic consumers who use up to 20,000 litres would benefit from a subsidy and pay at the rate of 3,000 cedis per 1,000 litres.
