Residential consumers to pay more than cold stores, barbering shops, salons, others as PURC increases tariffs

The Public Utility Regulatory Commission has announced that residential utility consumers will now pay more for electricity and water.

According to PURC, this is to help preserve jobs and livelihoods while promoting economic development.

“The Commission gave considerable thought to the role of small and medium-scale enterprises in the country’s economic development, in particular, the creation and/or preservation of jobs and livelihoods. The existing tariff is structured in a manner that slaps industry with punitive tariffs in order to subsidize residential consumers of electricity. This structure has contributed to the loss of competitiveness of Ghanaian industry, including small and medium size household enterprises. The implications for jobs and the general welfare of residential consumers is adverse and obvious.

“To address the challenge, for the first time, businesses, including small and medium scale business owners of Hairdressing and Beauty Parlours/Salons, Barbering Shops, Tailoring and Dress Making Shops, Welding, Mechanics, Cold stores, Chop bars, Vulcanising and Carpentry Workshops among others, will now pay lower tariffs than the residential consumer class,” the commission said.

The PURC said the new arrangement will help with the expansion of the local industry.

The PURC, at a press conference addressed by its Executive Secretary, Dr Ishmael Ackah, on Monday, also announced an increment in water and electricity tariffs.

The commission announced an increment in electricity and water tariffs by 27,15% and 21.55% respectively.

According to the commission, it had conducted an extensive review of utility tariffs, including natural gas charges, following proposals submitted by utility service providers.

“The companies requested for very astronomical increases with GWCL demanding over 300% increase in end-user tariffs. ECG and NEDCo proposed 148% and 113% increases respectively. VRA and GRIDCo proposed 37% and 48% increment respectively. After receiving these proposals, the Commission carried out rigorous regulatory audit of processes and assets of Utility Service Providers, enabling it to adjust the Weighted Average Cost of Gas (WACOG) for power generation and end-user tariffs for electricity and water,” the commission said.

Read details of the full announcement by PURC below: