If inflation and exchange rate reduces, utility tariffs may fall – PURC

The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Ishmael Ackah, has stated that if the major factors that cause tariff increment become stable, utility tariffs may be reduced.

According to him, if inflation reduces and the exchange rate also reduces or even remains stable, utility tariffs may witness some downward adjustment.

“So, our hope is for the exchange rate to remain stable or even fall if possible. Inflation would remain stable or even if it will go up, not so much like the June level. If some of these things happen, we will reduce the tariffs,” he was quoted by myjoyonline.com.

The Public Utilities Regulatory Commission (PURC) explained the rationale behind the recent tariff adjustment to begin on September 1, 2023.

Dr. Ishmael Ackah explained the various factors that were considered in the tariff adjustment.

“For water, the major driver, one is electricity. However, because we said the industrial customers would experience no increase, this time it didn’t have any effect.

“The (second) major driver for water is the cost of chemicals. So recently, they were using chemicals for water treatment, now what they have moved on to is what we call Colima, which is about two and half times more expensive than what they were using previously,” he said.

SSD/NOQ

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