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PURC justifies 18.36% rise in electricity tariff which takes effect on June 1

PURC justifies 18.36% rise in electricity tariff which takes effect on June 1

The PURC in September 2022, undertook a major tariff review (2022-2025) in which, it considered the cost of operation for regulated utilities, exchange rate, inflation, cost of fuel and other factors.

In the first quarter tariff decision, Jubilee Oil Field contributed 32.7% of gas, Sankofa contributed approximately 51.8%, while Nigeria Gas (N-Gas) contributed 15.1%.

The projected exchange rate used for the first quarter tariff decision (that is February to April) was GHS 8.6816 to the USDollar

Additionally, the Commission only passed on 75% of the exchange rate under-recovery, which was experienced between September 2022 and January 2023 in the first quarter tariff decision

This means that for the second quarter tariff decision, that 25% equivalent to GHS 0.6202 from September 2022 to January 2023 period plus the previous quarter under-recovery of GHS 2.2690 has to be recovered.

The hydro-thermal mix used for the second quarter is 29.01% for hydro, and 70.99% for thermal; as against 26.11% for hydro and 73.89% for thermal used for the first quarter tariff decision

In a nutshell, the 2nd quarter tariff decision of 18.36% for electricity helps to fully recover (i)100% of the inflationary effect, (ii)100% of the gas price effect and (iii)50% of the exchange rate effect.

Original Story on: Citi Newsroom
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