The water and electricity hikes announced by the Public Utility Regulatory Commission (PURC) last month is expected to take effect today.

As a result, electricity is expected to go up by 11.17% with water also going up by 8.1% across the country.

According to the Executive Secretary of the PURC, Mami Dufie Ofori the hikes are as a result of a multiplicity of issues including a projected fuel prices, and exchange rate differentials.

She said the tariff increment was taken after a prudent cost review and effective monitoring done by the commission.

“The key assumptions underpinning the determination and approval of the tariffs of electricity for the regulated market are: 2019/2020 electricity supply plans, generation mix of 23% hydro and 77%thermal, Ghana cedi-US dollar exchange rate of GHC5.05/USD1.00, projected inflation rate of 8%, projected fuel prices, expected increase in electricity demand, transmission system losses of 4.1%, expected increase in volume of electricity to be transmitted of 8.6%, base distribution of aggregate technical& commercial loss ratio of 22.6%, provision for uncollectible revenue of 2%. And for water: Electricity cost, cost of chemicals, Ghana cedi-US dollar exchange rate,” she said.

Commissioner and Chairman of the Technical Committee, Ishmael Edjekumhene added that in an attempt to cushion the impact of the new electricity tariff on businesses the demand tariff has dropped.

“The announcement that the demand tariff have been dropped and that only energy charges are going to be paid by the utility is actually meant to cushion the utilities impact of the tariff on businesses especially the low tariff category of customers.”

The Public Utility Regulatory Commission added that its outfit is committed to ensuring sustainability and growth of quality electricity and water service provision for socio-economic development.

By Nana Akua Gyidie