The commonly given advice that each electricity bill will be close to 27.15% more can be misleading.
Instead, disregard "27.15%", unless you're interested in statistics.
The new tariffs are actually complicated. Let's analyze the document. Click to enlarge.
"Residential". Residential is where people stay, either by being property owners or paying several months' advance for rent.
"Lifeline Customers". If you only use electricity for small or medium-sized modern light bulbs, charging your phone, and you don't share your meter, you qualify for the lifeline tariffs. If you use a fridge or a fan, you might not qualify for the lifeline tariffs.
If you have a blender, it doesn't necessarily mean you don't qualify, though it uses much it is only on for a few minutes at most so it does not have much time to use power.
What matters is the amount you pay every month.
"I pay 5 cedis a month": Then you will pay 5.82 cedis a month, 16.4% more.
Why 5.82? Let's look at the document again.
You qualify to be a Lifeline Customer.
The old price is 32.6060 Pesewas per unit, the new price is 41.9065 Pesewas per unit. So the old price is 0.326060 Ghana Cedis per unit, the new price is 0.419065 Ghana Cedis per unit.
Also, you pay 2 taxes. There is no E-levy while buying power.
1. The National Electrification Scheme Levy (some call it "special levy"). = 2%.
2. The Public Lighting Levy (some call it "street light levy") = 3%.
To apply taxes, multiply the cost per unit by 1.05.
Also, you pay a monthly service charge of 2.13 Ghana Cedis. The new price is the same as the old price.
Old Price: 8.38×(0.326060×1.05)+2.13=5
New Price: 8.38×(0.419065×1.05)+2.13=5.82
So, you pay 5 cedis 82 pesewas for 8.38 units, instead of 5 cedis 0 pesewas for 8.38 units.
If you share your meter, it's not "I pay 5 cedis every month". It can only be calculated this way if the landlord pays ONLY 5 cedis every month to the meter.
Disclaimer: Numbers on this page are subject to rounding(up, down, or simply rounding). Errors introduced by rounding shall not exceed 1%.
"I pay 10 cedis a month": Then you will pay 12.25 cedis a month, 22.5% more.
Old Price: 22.98×(0.326060×1.05)+2.13=10
New Price: 22.98×(0.419065×1.05)+2.13=12.25
"I pay 12.40 cedis a month": Then you will pay 15.33 cedis a month, 23.63% more.
Old Price: 30×(0.326060×1.05)+2.13=12.40
New Price: 30×(0.419065×1.05)+2.13=15.33
"I pay more than 12.40 cedis a month": Then you are not a Lifeline Customer.
Instead, you are under the category "All Other Residential Customers". Even if you were a Lifeline Customer, you will no longer be a Lifeline Customer if you still require 12.40 or more cedis worth of power in the old price.
"All Other Residential Customers". For example, you have a fan and a fridge. Or you use an electric stove. Or you use a borehole/well water pump. Or you share a meter with others.
0-300 kWh. If 300 or fewer units or credits are bought for the meter every month, it is easy to calculate, even if the the meter is shared with others. Those who use 1 unit will pay 0.890422*1.05=0.9349431 cedis per unit.
Also, a service charge of 10.7309 cedis (43.91% more) will be billed monthly.
"I pay 13 cedis a month": Then you will pay 40.42 cedis a month, 210.92% more.
Old Price: 31.75×(0.326060×1.05)+2.13=13
New Price: 31.75×(0.890422×1.05)+10.7309=40.42
The old tariff is not 0.654161 per unit. It's 0.326060 per unit for the first 50 units.
In the old tariff, using 50 units or fewer per month made you a Lifeline Consumer, which means you pay a service charge of 2.13 cedis per month. In the new tariff, using more than 30 units per month disqualifies you from being a Lifeline Customer, and you'll pay the 'normal' Service Charge of 10.7309 cedis.
"I pay 15 cedis a month": Then you will pay 45.89 cedis a month, 205.93% more.
Old Price: 37.60×(0.326060×1.05)+2.13=15
New Price: 37.60×(0.890422×1.05)+10.7309=45.89
"I pay 19.25 cedis a month": Then you will pay 57.48 cedis a month, 198.59% more.
Old Price: 50×(0.326060×1.05)+2.13=19.25
New Price: 50×(0.890422×1.05)+10.7309=57.48
19.25 is notable because this is the maximum that can be paid as a Lifeline Consumer in the old tariff. If 19.25 is paid, you'll get 50 units in the old tariff.
After 19.25, there is a gap, so you can't pay 20 cedis exactly.
After paying 19.25 cedis, to pay again so that you're in the category "Other Residential Consumers", you would have to pay the 'normal' Service Charge, which is 7.456947-2.13=5.326947.
So, it's 50×(0.326060×1.05)+2.13=19.25 vs 51×(0.326060×1.05)+7.456947=24.92, i.e. buying 51 units instead of 50 in the old tariff basically wastes money.
"I pay 30 cedis a month": Then you will pay 64.87 cedis a month, 116.23% more.
This is where it starts to get complicated.
If you know how tax brackets work, that's like how tariffs work.
Old Price: 50×(0.326060×1.05)+7.89×(0.654161×1.05)+7.456947=30
New Price: 57.89×(0.890422×1.05)+10.7309=64.86
0.654161, the "old tariff" in the document, is finally used.
The first 50 units are 0.326060 cedis per unit + tax.
The next 250 units are 0.654161 cedis per unit + tax.
"I pay 100 cedis a month": Then you will pay 160.14 cedis a month, 60.14% more.
Old Price: 50×(0.326060×1.05)+109.8×(0.654161×1.05)+7.456947=100
New Price: 159.80×(0.890422×1.05)+10.7309=160.14
"I pay 200 cedis a month": Then you will pay 296.25 cedis a month, 48.12% more.
Old Price: 50×(0.326060×1.05)+250×(0.654161×1.05)+4.15×(0.848974×1.05)+7.456947=200
New Price: 300×(0.890422×1.05)+4.15×(1.155595×1.05)+10.7309=296.25
"I pay 400 cedis a month": Then you will pay 568.49 cedis a month, 42.13% more.
Old Price: 50×(0.326060×1.05)+250×(0.654161×1.05)+228.51×(0.848974×1.05)+7.456947=400
New Price: 300×(0.890422×1.05)+228.51×(1.155595×1.05)+10.7309=568.49
"Non-Residential". Mostly commercial. A few examples were given: Hairdressing and Beauty Parlours/Salons, Barbering Shops, Tailoring and Dress Making Shops, Welding, Mechanics, Vulcanising and Carpentry Workshops.
Residential is 0.890422 cedis per unit for the first 300 units.
Non-Residential is 0.837841 cedis per unit for the first 300 units.
So it seems like Non-Residential is more affordable than Residential (except for the Service Charge), but, it is also more heavily taxed. So it is not more affordable.
1. The National Electrification Scheme Levy (some call it "special levy"). = 2%
2. The Public Lighting Levy (some call it "street light levy") = 3%
3. The National Health Insurance Levy (some call it "NHIL") = 2.5%
4. The GETFund Levy = 2.5%
5. The Value Added Tax (VAT, not "flat rate") = 12.5%
2 electricity bill calculators are available in this website:
1. /2020/02/calculate-cost-of-electricity-in-ghana.html - Old Tariff
2. /2022/08/sep-2022-ghana-light-bill-calculator.html - New Tariff
New tariffs take effect on September 1st.
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