The Public Utilities Regulatory Commission (PURC) has announced an 8.01% increase in water tariff, effective July 1.
This, the regulator says has become necessary because “the inflation rate has gone up.”
Another factor which necessitated the increase is the local currency’s depreciation against the dollar and other major currencies, Chairman of PURC’s Technical Committee, Ishmael Agyekumhene explained.
In the last tariff review in September 2018, the exchange rate used was GH¢4.43 to a dollar. In that review, the tariff was reduced by 10.08%.
“However, the exchange rate used to determine the current review is GH¢5.05,” Agyekumhene noted.
He added that taking the two factors into consideration, they “simply couldn’t have kept the tariffs at where they are.” “…unless we can hold everything constant,” he said.
Ghana Water disappointed
Meanwhile, the Ghana Water Company has expressed disappointment in the rate of the increment.
Communications Director of the GWC, Stanley Martey told Joy News they were expecting a higher rate as requested but they must work with what the regulator has given them.
He said with the electricity tariffs going up, 44% of their expenditure would be spent on power so “it is a difficult [sitution]” for them.
Resistance
With the opposition National Democratic Congress (NDC) kicking against a 11.17% increase in electricity tariff announced last Friday, the latest announcement is expected to the resisted too.
They stress the increased tariff will only deepen economic hardship.
This is the first increase in tariffs since March 2018 when the PURC announced a 10-30 percent reduction in prices of electricity. Residential consumers got a 17.5% reduction while non-residential got 30% slashed off.
The NDC called the move populist.
Latest Stories
-
AG’s office needs 1,500 public attorneys for proper discharge of functions – Godfred Dame
56 seconds -
Court sentences man to life imprisonment for murdering girlfriend; daughter
16 mins -
Bawumia’s $80 bn value claim for Spotify, false – Dubawa
27 mins -
GBA President calls for transparent and fair December election
42 mins -
November 8 not a public holiday – Interior Ministry
44 mins -
Policies the Church can promote to ensure every birth by a congregant is wanted, not unintended
47 mins -
Next NPP government to build new AG offices in all regions – Godfred Dame
1 hour -
Why corporate leadership can no longer be silent on sustainability
1 hour -
The Keeper’s Music unveils Neyty with new single ‘Most High God’
1 hour -
Bawumia outlines 8 initiatives to create 4 million jobs for youth if elected president
1 hour -
Over 4,000 unpaid teachers demand payment of 16 months arrears from government
2 hours -
I’ve apologised to Gloria Sarfo over flight issues – AMAA Country Director
2 hours -
Ghana nearly lost $9 billion to arbitrary claims in last four years – Attorney General
2 hours -
FWSC responds to CLOGSAG strike declaration, urges return to negotiation
3 hours -
Members contribute to ‘transport’ national team – Volleyball Vice President laments financial struggles
3 hours