Utility tariffs likely to go up from next month

Water and electricity tariffs are likely to go up next month because the models that indicate upward adjustments in the tariffs show an increase is imminent.

Cost of production, crude oil prices on the world market, inflation rates and the current value of the Ghana cedi compared to the dollar – factors that influence decisions during utility price reviews – all point to a possible upward review by the regulator.

The Public Utilities Regulatory Commission (PURC), is set to meet next month to deliberate on a possible review of the tariffs for the next quarter of 2014.

The meeting by the Commission is in line with its mandate of reviewing utility tariffs every three months, in accordance with the automatic adjustment formula.

But with all the key factors that prompts upward reviews showing an incrase some analysts maintain the PURC might be compelled to increase tariffs marginally.

Unless government steps in to cushion consumers from paying more, an upward review is almost certain, analysts say.

For some of the power companies, a tariff increase is the only way out  as the Atubo gas processing company, which is expected to reduce cost of obtaining fuel to run thermal plants is yet to come on stream.

This article has 0 comment, leave your comment.