According to projections made by the Public Utilities Regulatory Commission (PURC), GH₵6.81 billion will be needed in revenue during the second quarter.

The projection is expected to raise revenue requirements for the first quarter by GH₵1.14 billion, according to the PURC. For the first quarter of 2024, a total of GHS5.67 billion in revenue was required.

A hike in water and electricity rates has been announced by the PURC, and it will take effect on July 1 and last until September 30, 2024.

According to the Commission, electricity rates for lifeline customers (0–30 kWh) will increase by 3.45%, while rates for all other residential customers who do not fall into the lifeline category would increase by 5.84%.

A statement dated Friday, May 31, and signed by Dr. Ishmael Ackah, the Commission’s Executive Secretary, said that it had chosen to recover GHS5.90 billion of the GHS6.81 billion needed for the second quarter.

“Revenue Requirement for the Electricity Supply Industry (ESI) Total revenue requirement for the first quarter of 2024, amounted to GH₵5.67 billion. In the second quarter, the revenue requirement is projected to be GH₵6.81 billion. This will result in an increase of GH₵1.14B over the first quarter revenue requirement. The Commission, however, decided to recover GH₵5.90 billion of the GH₵6.81 billion required for the second quarter.

“This decision was taken by the Commission taking into consideration the revenue collection performance of the sector since continuous increases in tariffs have not yielded the corresponding increase in revenue collection by the utilities to cover sector expenditure. In addition, the Commission considered the negative effect of passing on the entire revenue required in one tranche on customers. Thus, the difference of GH₵906.21 million, will be recovered in subsequent quarters.”

PURC further stated that GH₵670.18 million was the required revenue for the second quarter of 2024, emphasizing that GH₵34.33 million more must be recovered in the same quarter.

“Revenue Requirement for the Urban Water Supply Industry (UWSI). Total revenue requirement for the water sector for the first quarter of 2024, amounted to GH₵635.86 million. Revenue requirement for the second quarter of 2024 amounted to GHS670.18 million. An additional GH₵34.33 million needs to be recovered in the second quarter of 2024. The water tariff has been adjusted upwards by 5.16%,” PURC said.