PURC announces significant reduction in electricity tariffs

The Public Utilities Regulatory Commission (PURC) has announced a substantial reduction in electricity tariffs, effective from April 1, 2024, to June 30, 2024, in a major move to alleviate the financial burden on consumers.

Residential Consumers in the 0-300 kWh consumption bracket and lifeline consumers (0-30 kWh) will experience no change (0 percent) in electricity tariffs.

However, those using 301 kWh and above can expect an average reduction of 6.56 percent. Non-residential consumers within the 0-300 kWh range will see no change, while those consuming above 300 kWh will experience an average reduction of 4.98 percent.

The adjustment, which is part of the Commission’s Quarterly Tariff Review Mechanism, reflects considerations such as exchange rates, inflation, electricity generation mix, and fuel costs.

This initiative is a testament to PURC’s commitment to striking a balance between affordability for consumers and maintaining the financial health of utility service providers.

Key highlights of the tariff reduction and structural reforms:

1. Residential Tariff Bands: Reduced from four to three for simplicity in implementation, customer understanding, and long-term affordability.
2. Industry Tariff Bands: Industrial bands streamlined to reward productive electricity use, resulting in a 4.88 percent reduction for Low Voltage (SLT-LV) consumers. High voltage, medium voltage, and steel companies have been merged into one band, leading to a 4.72 percent-point reduction in the tariff of high voltage consumers.
3. Non-Residential Customer Tariff Bands: Streamlined to two bands, with no change for 0-300 kWh consumption and a 4.98 percent reduction for those consuming over 300 kWh.

Additionally, the water tariffs for all customer classes will remain unchanged during the specified review period.

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