Ghanaians Will Pay More For Electricity And Water From July 1

by Ikeoluwa Juliana Ogungbangbe
Ghana electricity tariffs

KEY POINTS


  • Ghana’s regulator raised electricity tariffs by 3.49 percent across all customer categories from July.
  • Water tariffs climbed 0.85 percent under the same quarterly review approved by the commission.
  • A weaker cedi, inflation and gas costs shaped the latest tariff adjustment decision.

Ghanaians will pay more for electricity and water from July 1.

The Public Utilities Regulatory Commission approved the new rates this week. It raised electricity tariffs by 3.49 percent across all customer categories. Water tariffs went up by 0.85 percent. The changes form part of the regulator’s quarterly review.

The commission said the increases keep service providers financially viable. It said the move protects the steady supply of power and water.

A statement issued Monday explained the reasoning. Dr. Shafic Suleman, the commission’s acting executive, signed it. He said the review weighed several economic factors. These included the cedi’s slide against the U.S. dollar, inflation and the cost of natural gas for power generation.

What drove the increase

The regulator runs the review every quarter. It said the mechanism guards the real value of tariffs as the economy shifts. The aim is to soften the blow on consumers.

For the third quarter, the commission used a weighted average exchange rate of GH¢11.2228 to the dollar. That marked a 0.2 percent depreciation of the cedi from the previous quarter. The commission also applied a three-month average inflation rate of 3.43 percent. That figure fell from 4.17 percent in the second quarter.

The weighted average cost of natural gas dropped 1.58 percent to $7.9708 per MMBtu. The hydro-thermal generation mix held steady. Hydro accounted for 20.9 percent and thermal for 79.1 percent.

What households will pay

The new rates hit different customers in different ways. Residential users on the lifeline tariff feel a modest change. Those who use up to 30 kilowatt-hours a month will pay 89.93 pesewas per kilowatt-hour. That rate rose from 86.9 pesewas.

Water customers face a similar shift. Households using up to five cubic meters a month under the lifeline category will pay 598.54 pesewas per cubic meter. That rate climbed from 593.49 pesewas. Service charges across all categories stayed the same.

The commission said it would keep watching how regulated utilities operate. It pledged to enforce standards that lift service quality. It also promised to push for better value for money.

The latest adjustment lands as households across Ghana manage tight budgets. Power and water bills remain a sensitive issue for many families. The regulator framed the increase as a careful balance between cost recovery and consumer relief.

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