The tariff increase for natural gas and electricity for the second quarter of the year 2023 has been approved by the Public Utilities and Regulatory Commission (PURC).
The approval of the new tariff follows the conduct of the quarterly tariff reviews for the second quarter of the year by the commission.
“The Quarterly Tariff Review Mechanism seeks to track and incorporate changes in key factors used in determining natural gas and electricity tariffs. These factors are the Ghana Cedis/US Dollar exchange rate, inflation, electricity generation mix, and the weighted average cost of natural gas (WACOG),’’ the commission noted.
According to a statement issued by the commission on May 17, 2023, sighted by 1Family Radio, it was indicated that “this review has become necessary to maintain the real value of the cost of supply of the utility services and to ensure that the utility companies do not under- or over-recover costs.’’
It continued that since the announcement of the first quarter tariff decision in January 2023, the key variables underlying the rate settings have changed. Therefore, after extensive deliberations and analysis, the commission has decided to increase the average end-user tariff for electricity by 18.36% across the board for all customer groups.