Consumers in Ghana will pay 11.17 percent more for their electricity use from Monday (July 1), the Public Utilities Regulatory Commission (PURC) has announced.
“The PURC has approved of an 11.17 percent tariff increase for recovery of total electricity revenue requirement for the regulated electricity market, effective July 1, 2019,” a release issued here by the regulator on Friday announced.
Before arriving at this decision, the regulators said it had received various tariff proposals from the major players in the sector, leading to the upward review.
While the tariff hike was necessary for the financial stability of the energy sector, the regulator said it had subjected the proposed tariffs to extensive technical and financial scrutiny to arrive at the approved rate.
To enable the industry sector to save some cost in power consumption, the PURC has abolished the Maximum Demand Charge (MDC) imposed on industries.
The high cost of electricity was one of the grounds on which the 2016 election campaign was fought making the current ruling party win with the promise of reducing tariffs.
Indeed, in 2018, the PURC reduced the tariffs by 13 percent for residential users and 21 percent for high voltage users such as mines and manufacturing concerns.
Deputy Minister for Energy Mohammed Amin Adams reiterated the government’s position recently; to promote cheaper energy to spur mining investments.
Sector analysts have however cautioned the authorities about a massive debt build-up in the energy sector which threatened sustainable power production and distribution.
Energy think tank Africa Center for Energy Policy (ACEP) urged the PURC on Thursday to announce its decision on the tariffs, two weeks to the proposed date so consumers would prepare. Enditem