Increase in Electricity and Water Tariffs: The Public Utilities Regulatory Commission (PURC) has officially declared an upcoming adjustment in electricity and water tariffs, with effect from September 1, 2023.
The new tariffs will reflect an increase of 4.22% for electricity and 1.18% for water.
The tariff adjustments are a result of the regulatory process for quarterly tariff revisions conducted by the PURC. This process involves tracking and integrating changes in key elements that influence the determination of electricity, natural gas, and water tariffs.
In a statement released on August 22, 2023, the PURC clarified the changes for various customer groups. For non-lifeline residential customers, there will be a 4.22% average increase in electricity tariffs. Lifeline customers, who typically consume a smaller amount of water, will not experience any increase in their tariffs. However, other customer groups will face a 1.18% increase in water tariffs.
Additionally, the PURC recognized the challenges posed by high electricity costs for small and medium-scale enterprises (SMEs) and the impact it has on their competitiveness.
In response, the commission has introduced a new tariff structure for industries and SMEs, which will result in lower tariffs for them compared to residential consumers. This measure aims to alleviate the financial burden on businesses and support their contribution to the nation’s economic development and job creation.
Letter: Increase in Electricity and Water Tariffs
The commission acknowledged that the current economic landscape, including external factors, has led to the proposed tariff adjustments. They emphasized that while these increases may be necessary to prevent energy supply disruptions like the previous load shedding crisis (dumsor), they also aim to balance the interests of both consumers and utility providers.
The PURC will continue to adhere to its Rate Setting Guidelines for Quarterly Review of Gas, Electricity, and Water Tariffs to ensure regular and transparent tariff adjustments. The quarterly review process allows for the incorporation of changes in essential factors affecting utility tariffs, aiming to maintain a fair balance between the needs of consumers and the sustainability of the utility sector.
