New tarrif on water and electricity take effect from today - What dis dey mean for Ghanaians

Ghanaians go start dey pay more for water and electricity starting today, 1 September.

Dis be after Public Utility Regulatory Commission (PURC) approve 27.15 percent increase for water den 21.55 percent for increase for electricity. 

De increase dey come on de back of already existing economic challenges wey increase living costs for Ghanaians. 

“Like e go better for dem to hold on wit de utility increase, money no dey, de economy hard so dis go affect me” one consumer Samuel Otoo talk tok BBC Pidgin.

How PURC arrive at de price increase

In approving de Weighted Average Cost of Gas (WACOG) for the regulated period (2022-2025), PURC consider, GNPC projected gas volumes by gas source den tariffs as well as projected gas supply volumes and tariffs by N-Gas.

  For Gas Gathering, Processing and Transmission Service Charges, the Commission say dem take into consideration de financing, investment and operational costs as well as condensates and liquids revenue receipts by GNGC.

For de consumer or end-user electricity tariffs/rates de Commission considered de cost of power, Weighted Average Cost of Gas (WACOG), inflation and de Ghana Cedi/US Dollar Exchange Rate. 

According to PURC other factors dey include network upgrade or expansion and investments, operation and maintenance of service delivery infrastructure as well as de financial viability of de Utility Service Providers.

What de Impact of de new tariffs be for consumers

So how de new electricity and water billing go dey like, Dr Ismael Ackah, Executive Secretary to Public Utility Regulatory Commission explain am give we.

Based on de new increment, lifeline residential users which be people who dey 0-30 kilowatt hour go now pay 41.90 pesewas instead of de previous 36.20 pesewas.

Also, residential consumers go pay 89.04 pesewas per kilowatt hour and 128.39 pesewas per kilowatt hour.

For businesses, small and medium size enterprises go now pay 83.78 for consuming electricity of 0-300 kilowatt hour.

Meanwhile for water, residential consumers go pay new tariff of 4.0 pesewas per metric tonne instead of de previous 3.29 pesewas while non-residential consumers go pay 11.21 pesewas.

Background to latest price increases

Electricity Company of Ghana (ECG) in May request for 148% increase in utility prices for 2022, meanwhile made Ghana Water Company Limited (GWCL) also dey ask for 334% increase in water tariffs.

De proposed tariff increase dey generate debate among Ghanaians who dey reject de proposals.

Both ECG den GWCL say de proposed increment be important sake of dis go sustain for dia operations.

De latest increase be major shift from de proposed tariff increase in May dis year by de utility companies wey demand over 100% each price increases.