Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), has said his expectation was for water tariff to see a higher increment compared to the other utilities in the recent tariffs adjustment announced by the PURC, all other things being equal.
He explains that the surge in illegal mining activities also known as ‘galamsey’, which has increased turbidity of water levels and making it more difficult and expensive to treat water for supply would have adversely impacted the tariff increment.
However, electricity rather saw a higher adjustment compared to water whose cost of treatment has surged as a result of illegal mining.
Mr. Amoah also explains that the cost of gas which has direct relationship with electricity cost has also gone down, and expected that the increment would have tilted towards water instead of power.
Speaking on Ghana Tonight Monday, September 30, 2024, Mr. Amoah said “if you take the last time the PURC did any adjustment, just about two months ago, the cedi was exchanging to the dollar around GHC16.85, today it’s around GHC16.20, average market. What we would have thought would also influence that decision is the cost of fuel particularly for the power sector.
“Average fuel prices were hovering around 14.90 to 15.00 Ghana [cedis] per litre is today selling at 12.45 [Ghana cedis], one would have expected that the cost of fuel, particularly gas, would have also influenced the pricing of power.
“Unfortunately, our power rather saw a 3% jump, whilst water, whose treatment as in recent times come under huge scrutiny and debate due to the galamsey menace, rather saw a 1% [increase]. So, whatever the PURC is working with should be an interesting one.
“Our expectation would have been that maybe the cost of water would have rather gone up due to the surge in galamsey business and then again, the pollution is done to water bodies and the amount of alum needed to purify water.”
Effective today, October 1, 2024, consumers of both electricity and water would experience increment in tariffs to ensure regular supply of service.
This follows a new tariff approval by the Public Utilities Regulatory Commission (PURC) seeing electricity jump by 3.02 per cent and water up by 1.86 per cent across the board for all customers.
The new tariff review was occasioned by changes in the exchange rate, domestic inflation rate, cost of natural gas and electricity generation mix, among others.
A statement issued Saturday, September 28, 2024, and signed by the Executive Secretary of the PURC, Dr. Ishmael Ackah, explained that the review, undertaken within the PURC Quarterly Tariff Review Framework, was to account for changes in key uncontrollable factors.
“The Public Utilities Regulatory Commission of Ghana wishes to inform consumers of electricity and water that it has carried out its quarterly review of the existing tariffs.
The new tariffs take effect from October 1, 2024.
“This review, undertaken within the PURC Quarterly Tariff Review Framework, is to account for changes in key uncontrollable factors, specifically the exchange rate, domestic inflation rate, cost of natural gas and electricity generation mix, among others,” he said.
PURC announces reduction in electricity tariffs by 1.52%, water up by 0.34%
