The Public Utilities Regulatory Commission (PURC) has stated that residential users of electricity are likely to pay the full cost of services provided by the utility provider by the end of the year.

This comes on the back of a recent upward adjustment of tariffs by the utility regulator which saw an increase in electricity and water tariffs by 30 and 8.3 percent respectively, effective February 1.

Per the current pricing metering, residential users pay about 87 percent of the total cost of services while the outstanding difference is absorbed by industries.

Speaking in a panel discussion at the 2023 Crystal Ball Africa conference in Accra, the Executive Secretary of the Public Utilities Regulatory Commission, Dr. Ishmael Ackah said that the move is to bring some amount of relief to local industries as they lament the high cost of production.

“For twenty-five years, industries were paying for residential and in fact, we saw residential consumers paying about 40 percent of the cost of serving them. Industries were paying the rest in addition to the lifeline consumer,” he said.

“In September, PURC decided that, that should be reversed but if you say that you are going to take it off immediately, what will happen is that you are going to increase residential tariff by about 500 percent and that one will attract a demonstration, so we have to do it gradually,” he added.

“So as of now, residential consumers are paying 87 percent of the cost of service and hopefully by the end of this year, they should pay the full cost of service. And when you are able to do that it will also boost Industries,” he noted.