The Public Utilities Regulatory Commission (PURC) has increased electricity and water tariffs by 14.75% and 4.02%, respectively, effective May 3.
The upward adjustment comes after the Commission concluded its quarterly review for the first half of the year, which is aimed at maintaining financial stability for utility providers while managing the impact on consumers.
The tariff, which was approved on Friday, April 11, 2025 was occasioned by changes in the exchange rate, domestic inflation rate, cost of natural gas and electricity generation mix, among others.
“The regulatory process is in line with the Commission’s Quarterly Tariff Review Mechanism outlined in its Rate Setting Guidelines for Quarterly Adjustment of Natural Gas, Electricity and Water Tariffs. The Quarterly Tariff Adjustment tracks and incorporates changes in four (4) key variables namely, the Cedi/Dollar exchange rate, inflation, electricity generation mix, and cost of fuel (mainly natural gas) in electricity tariffs. The Quarterly Tariff Review Mechanism is essentially meant to avoid over- and under-recovery of revenues,” the PURC explained.
The Commission also cited the need to recover 50% of outstanding revenue—amounting to GHS976 million—from previous quarters in 2024. This repayment obligation significantly influenced the upward adjustment. To mitigate the burden on consumers, the remaining 50% will be spread over subsequent quarters in 2025.
The PURC emphasised that the tariff increments are essential to addressing under-recoveries by utility companies, which, if unaddressed, could result in service disruptions. Despite the increase, the Commission underscored its commitment to balancing the interests of both consumers and utility providers amid ongoing economic pressures.
