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Ghana to Raise Power Tariff 78.9% as Cedi Drop Boosts Costs
 
Posted on: 27-Sep-2013         Source: Bloomberg
 
 
 
Ghana’s electricity tariff will rise as much as 78.9 percent as the decline in the cedi makes imports of crude and refined products more expensive, the head of the utilities commission said.

The water fee will increase 52 percent, Samuel Sarpong, commissioner of Accra-based Public Utilities Regulatory Commission, told reporters in in the capital today. The increases will happen on Oct. 1, he said. The rate for bulk users will rise to as much as 45.35 cedis a kilowatt-hour, an increase of 78.9 percent, while smaller consumers will see the rate rise 65 percent to 15.68 cedis, he said.

The currency has plunged 13 percent this year against the dollar, the second-worst performer in Africa after the rand, putting pressure on inflation and pushing up the cost of imported fuel. Upside risks to inflation remain after the rate slowed for the first time this year in August, central bank Governor Kofi Wampah said on Sept. 18. The West African nation imports most of its fuel.

“The importation of crude to supplement natural gas, as well as inflation and the depreciation of the cedi means increased production cost for utility service providers,” Sarpong said.