Crude oil prices cause upward adjustments in water, electricity tariffs – PURC

The Public Utilities Regulatory Commission (PURC) has said that it factored in the prices of crude oil and natural gas to adjust water and electricity tariffs upward.

The PURC on Monday 30th September, 2019 announced that water and electricity tariffs will go up effective Tuesday October 1, 2019.

The statement signed by Mami Dufie Ofori, Executive Secretary of the PURC said: “Following a review of Electricity and Water tariffs for the fourth quarter 2019 which is from October – December 2019, the Public Utilities Regulatory Commission wishes to announce for the information of consumers of electricity and water that there has been an upward adjustment in the existing tariffs. The increase is 5.94% for electricity tariffs and 2.22% on water tariffs across board for all customer categories effective October 1, 2019.

“The Automatic Adjustment Formula (AAF) is a tariff mechanism that seeks to track and incorporate movement in key determining factors to reflect the real cost of electricity and water quarterly.

“The following factors were considered in computing he automatic adjustment formula

Ghana Cedi-US Exchange rate

Inflation

Price of crude and natural gas

Fuel mix (crude, oil and natural gas

Generation mix (hydro and thermal)

Power purchase cost

Electricity cost (a major cost component i water production)

The Commission however wishes to restate its commitment to embark on effective tariff monitoring programme aimed at providing the end user improved quality of service.