The Public Utilities Regulatory Commission (PURC) has maintained the existing electricity and water tariffs for the fourth quarter of 2026, with no adjustment to the rates currently applicable.
The Commission said the tariffs approved for the third quarter would remain unchanged at 0% adjustment and take effect from October 1, 2026.
According to the PURC, the decision follows its quarterly tariff review, which is intended to ensure that utility tariffs reflect prevailing economic and operational conditions while maintaining the financial viability of electricity and water service providers.
The Commission said the quarterly reviews also seek to strike a balance between the operational needs of utility companies and the impact of tariff levels on consumers and their general wellbeing.
In arriving at the fourth-quarter tariff decision, the PURC considered several key economic and operational indicators.
These included the exchange rate between the Ghana cedi and the United States dollar, domestic inflation, the cost of natural gas used to power thermal generation plants, and the projected electricity generation mix between hydro and thermal sources.
The Commission said these factors were assessed to determine whether changes in the cost of providing electricity and water services warranted an adjustment to the existing tariffs.
One of the key variables considered was the movement of the Ghana cedi against the US dollar.
For the fourth quarter of 2026, the PURC applied a weighted average Ghana cedi-US dollar exchange rate of GH¢11.5646 to US$1.00.
The Commission said this represented a 3.04% depreciation of the Ghana cedi compared with the applicable third-quarter exchange rate of GH¢11.2228 to US$1.00.
Movements in the exchange rate are an important consideration in the tariff review because some costs associated with the provision of utility services are influenced by foreign currency-denominated expenses.
The PURC also factored in the prevailing inflationary environment.
It applied an average annual inflation rate of 4.97% for the fourth quarter, compared with 3.43% used in the third quarter.
The Commission said this represented an upward adjustment of 44.89% in the inflation assumption used in the review.
Despite the increase in the inflation factor, the PURC concluded that the overall tariff review did not warrant an adjustment to electricity and water rates for the fourth quarter.
The cost of natural gas, a major fuel used in Ghana’s thermal power generation, also featured prominently in the Commission’s assessment.
For the fourth quarter, the PURC applied a Weighted Average Cost of Gas (WACOG) of US$7.8379 per MMBtu.
This represents a 1.67% reduction from the third-quarter WACOG of US$7.9708 per MMBtu.
The decline in the projected cost of natural gas provides some relief to thermal power generation costs and formed part of the factors considered in maintaining the existing electricity tariff.
The projected electricity generation mix also showed a shift towards hydro generation in the fourth quarter.
According to the PURC, projected generation from hydro sources increased from 20.90% in the third quarter to 24.25% in the fourth quarter, representing an increase of approximately 16.03%.
At the same time, the share of thermal generation is projected to decline.
Thermal generation is expected to account for 75.75% of total generation in the fourth quarter, compared with 79.10% in the third quarter, representing an approximately 4.24% decline.
The change in the generation mix is significant because hydro and thermal generation have different cost structures, with thermal plants relying substantially on fuel inputs such as natural gas.
Based on its assessment of the various economic and operational indicators, the PURC said there would be no change to the existing third-quarter electricity and water tariffs for the fourth quarter.
Consumers will therefore continue to pay the existing approved rates from October 1, 2026, unless otherwise provided for under the Commission’s applicable tariff structure.
The PURC reiterated that its quarterly tariff reviews are designed to ensure that utility tariffs remain responsive to changes in the economic and operational environment.
The Commission said the reviews are necessary to help utility service providers remain financially viable and capable of delivering reliable services, while also taking into consideration the effect of tariff decisions on consumers.
The fourth-quarter decision means households, businesses and other electricity and water consumers will not face a tariff increase arising from the PURC’s quarterly review for the period beginning October 1, 2026.
By 1960news.com
