The Public Utilities Regulatory Commission (PURC) has announced new utility tariff adjustments, set to take effect on January 1, 2026, with electricity tariffs increasing by 9.8% and water tariffs by 15.9%.
While the move aims to support utility providers’ investment needs and industry competitiveness, experts warn that it may place undue hardship on ordinary Ghanaians already grappling with inordinately high living costs.
According to a Tax Analyst, Francis Timore, ECG’s problems are largely self-inflicted, citing technical and commercial losses, billing inconsistencies, and revenue leakages.
He renewed calls for long-term reforms to fix persistent inefficiencies at the Electricity Company of Ghana (ECG), arguing that tariff hikes cannot continue to be the default response to the utility’s operational and financial challenges.
“The realities we face (with regards to water tariffs) stem from the state’s inability to curb illegal mining. These are not operational failures by Ghana Water but spillovers from broader governance challenges. In that sense, the water tariff increase, though unfortunate, reflects unavoidable external costs,” he noted.
“However, this justification cannot be extended to electricity tariffs. At the distribution level, numerous long-standing inefficiencies remain unaddressed. Technical and commercial losses, billing inconsistencies, revenue leakages from power theft, and managerial gaps continue to undermine ECG.
Unfair Burden
Consequently, the Institute of Climate and Environmental Governance (ICEG) warns that the tariff hikes unfairly burden low-income households, defeating the tenets of fairness.
ICEG contends that consumers shouldn’t pay for systemic inefficiencies and high transmission losses and strongly criticised the regulator’s decision to increase electricity and water tariffs.
The environmentalist argues that the adjustments, outlined in the 2025–2030 Major Multi-year Tariff Review Order (MTTO), fail to protect consumers, especially low-income households, at a time of high inflation and reduced purchasing power.
“The interest of consumers is certainly not protected with such an increase,” the statement said, signed by Policy Lead Kwesi Yamoah Abaidoo. “The upward adjustment suggests lifeline consumers will have to pay more for the same amount of electricity consumed. This defeats the tenets of fairness.”
The group acknowledges PURC’s mandate but insists the commission must prioritise shielding Ghanaians from unfair charges and calls for a better balance between the financial needs of utility companies and the current socio-economic realities facing citizens.
Political view
A member of the ruling political party and a government appointee, Nii Lante Vanderpuye, has called for reconsideration of the tariff increases, advocating for a fair balance between operational sustainability and affordability.
The National Coordinator for the District Road Improvement Programme (DRIP), called on authorities to factor in prevailing economic challenges before approving any further adjustments. While acknowledging that utility service providers require sufficient funding to remain functional and deliver quality service, he maintained that consumers should not be overburdened.
According to him, any tariff review must strike a fair balance between operational sustainability for providers and affordability for the public, especially at a time when many households are already grappling with rising living costs.
“They must look at the condition within which we are. We know they need these monies to provide us with services, but 15.9% for water and 9.8% for electricity is extremely high. It must be looked at again.”
Mr Vanderpuye stressed that even though the Public Utilities Regulatory Commission (PURC) operates as an autonomous body, its decisions ultimately affect citizens whose incomes are already stretched.
“It is about the citizens of this country. If we are going to accept that 9%, we should look at how we can break it down over a certain period. But 9% straight is too high, and it is going to put stress on the ordinary Ghanaian. We must look at it,” he noted.”
Consumers uproar
Many other consumers and stakeholders have complained that increased tariffs may exacerbate financial strain on households and businesses as experts call for long-term reforms to address ECG’s inefficiencies and promote transparency.
As Ghana navigates its economic recovery, experts urge policymakers to prioritize consumer welfare and utility efficiency, ensuring that tariff adjustments support sustainable development and equitable access to essential services.
