The Public Utilities Regulatory Commission (PURC) has estimated that the revenue needed for the second quarter will be GH₵6.81 billion.

This projection signifies a GH₵1.14 billion increase compared to the revenue required in the first quarter, which was GHS5.67 billion.

In response to this, the PURC has announced a tariff increase for Electricity and Water, effective from July 1 to September 30, 2024.

Specifically, there will be a 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh) and a 5.84% increase for all other residential consumers.

Dr. Ishmael Ackah, the Executive Secretary of the PURC, stated in a signed statement dated May 31 that the Commission aims to recover GHS5.90 billion out of the GHS6.81 billion required 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.”

The decision to recover only a portion of the required revenue was made considering the sector's revenue collection performance, as continuous tariff increases haven't resulted in proportional revenue collection by the utilities.

Moreover, passing on the entire revenue requirement in one go would adversely impact customers. The remaining GH₵906.21 million will be recovered in subsequent quarters.

Additionally, PURC mentioned that the revenue requirement for the second quarter of 2024 for the Urban Water Supply Industry (UWSI) is GH₵670.18 million, with an additional GH₵34.33 million needing recovery.

“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.

This adjustment includes a 5.16% increase in water tariffs.