From July 1, 2024, to September 30, 2024, electricity and water consumers in Ghana will face higher tariffs, according to an announcement by the country’s economic regulator for utilities on Saturday.
The statement from the regulator, signed by Executive Secretary Dr. Ishmael Ackah, indicates that lifeline electricity consumers (0-30 kWh) will see a 3.45% increase in rates. Other consumers (31 kWh and above), including non-residential users, will experience a 5.84% increase, while industries will face a 4.92% rise in electricity rates. Water rates will also increase by 5.16% during the same period.
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These adjustments are based on the Quarterly Tariff Review Mechanism, which accounts for changes in key uncontrollable factors such as the exchange rate between the US dollar and the Ghanaian cedi, the domestic inflation rate, the electricity generation mix, and fuel costs, especially natural gas.
In the first quarter tariff review, effective from April 1, the exchange rate was GH¢12.1349 to US$1, and the Weighted Average Cost of Natural Gas (WACOG) was $7.64 MMBtu. For the second quarter, the exchange rate is GH¢14.6584 to US$1, and the WACOG is $8.0422 MMBtu.
The Commission projects the revenue requirement for the second quarter to be GH¢6.81 billion, up from GH¢5.67 billion in the first quarter, marking an increase of GH¢1.14 billion. However, the Commission has decided that utilities will recover only GH¢5.90 billion, due to the fact that continuous tariff increases have not led to a proportional rise in revenue collection.
