Ghanaian households and businesses are bracing for higher utility bills as the Public Utilities Regulatory Commission (PURC) announced substantial increases in electricity and water tariffs, effective January 1, 2026. The decision, part of the Commission’s Multi-Year Tariff Review (MYTO) for 2026–2030, will see electricity rates rise by 9.86% across all customer categories, while water tariffs climb by 15.92% over the five-year period.
In a statement released on December 2, PURC Executive Secretary Dr. Shafic Suleman explained that the adjustments stem from a comprehensive evaluation of utility investment needs, macroeconomic pressures, and stakeholder input. “The review ensures that utilities can meet their asset investment requirements while balancing consumer interests and industry competitiveness,” Dr. Suleman said. The process involved months of investment hearings, regional public forums, and consultations with utility providers like the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), and Ghana Water Company Limited (GWCL).
Key Factors Driving the Increases
The tariff hikes are influenced by several economic and operational challenges facing Ghana’s utilities sector. For electricity, PURC projected a 2026 generation mix dominated by thermal power at 78.79%, with hydro at 20.90% and renewables at just 0.31%. This shift, coupled with rising fuel costs—the Weighted Average Cost of Gas (WACOG) is expected to reach US$7.8749 per million British thermal units (MMBtu)—has necessitated the adjustment. Additional assumptions include an inflation rate of 8% and a cedi-to-dollar exchange rate of GHS 12.01 to US$1.
Water tariffs face even steeper pressures due to high non-revenue water losses, projected production and sales volumes, and capital investments required to expand infrastructure. PURC emphasized that the 15.92% increase will be phased over the control period to mitigate immediate shocks, with quarterly reviews to account for fluctuations in exchange rates, inflation, and other uncontrollable factors.
In a bid to enhance access in underserved areas, the Commission has also introduced mini-grid tariffs for island and hard-to-reach communities. These costs will be absorbed into the revenue requirements of the Volta River Authority (VRA), ensuring broader electricity coverage without isolated price surges.
Consumer and Industry Reactions
The announcement has sparked mixed responses. Consumer rights groups, including the Center for Policy Analysis (CEPA), warned that the hikes could exacerbate living costs amid Ghana’s ongoing economic recovery from inflation and debt restructuring. “While investments are crucial, vulnerable households need safeguards like targeted subsidies,” said a CEPA spokesperson.
On the other hand, industry leaders welcomed the move as a step toward financial sustainability. The Association of Ghanaian Industries (AGI) noted that reliable utilities are vital for manufacturing competitiveness, though they urged PURC to monitor implementation closely.
Service fees for both electricity and water remain unchanged, providing some relief to low-usage residential customers. PURC has directed utilities to publish detailed rate schedules and educate consumers on the changes.
Broader Implications for Ghana’s Economy
This MYTO aligns with PURC’s mandate under the Public Utilities Regulatory Commission Act, 1997 (Act 538), to promote efficient service delivery while protecting public interest. The decision comes at a time when Ghana grapples with energy sector debts exceeding GHS 10 billion and efforts to integrate more renewables into the grid.
As the new year approaches, analysts predict the tariffs could add up to GHS 20–30 monthly to average household bills, depending on consumption levels. PURC has committed to ongoing engagement, inviting feedback through its toll-free line (0800-100-130) and website.
For more details on the revised rates, consumers are advised to visit the PURC website or contact their local utility offices. The full statement is available here.