PURC projects GH₵6.81bn revenue requirement for Q2

The Public Utilities Regulatory Commission (PURC) has projected the revenue requirement for the second quarter to be GH₵6.81 billion.

The projection, the PURC believes will result in an increase of GH₵1.14 billion over the first quarter revenue requirement. Total revenue requirement for the first quarter of 2024, amounted to GHS5.67 billion.

The PURC has announced an increase in Electricity and Water tariffs, effective from July 1 to September 30, 2024.

The Commission has stated that there will be a 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh); a 5.84% increase for all other residential consumers who are not part of the lifeline category bracket.

In a statement signed by its Executive Secretary, Dr. Ishmael Ackah, dated Friday, May 31, the Commission stated that it decided to recover GHS5.90 billion 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.”

PURC added that the Revenue requirement for the second quarter of 2024 amounted to GH₵670.18 million, stressing that an additional GH₵34.33 million needs to be recovered in the second quarter of 2024.

“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.