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Electricity tariffs rise by 1.14%, water unaffected, effective October 1

BusinessElectricity tariffs rise by 1.14%, water unaffected, effective October 1

The Public Utilities Regulatory Commission (PURC) has revealed a 1.14 per cent upward adjustment in electricity tariffs, effective October 1, 2025.

The upward adjustment in electricity tariffs is for all consumer categories.

However, water tariffs will remain unchanged.

According to the PURC, the decision follows its Quarterly Tariff Review Mechanism.

The Acting Executive Secretary, Shafic Suleman, in a statement, highlighted that the decision was made based on the  Ghana cedi–US dollar exchange rate, domestic inflation, the electricity generation mix, and fuel prices, especially natural gas.

The PURC emphasised that the review is necessary to ensure service providers are financially stable to ensure the continuous delivery of electricity.

The PURC added that it “applied a projected weighted average exchange rate of GHS12.3715 per US$1, factoring in an under-recovery of GHS0.3980 per US$1 from the third quarter”.

“PURC also used an annual average inflation rate of 12.43 per cent for the fourth quarter of 2025 and approved a weighted average cost of natural gas of $7.7134/MMBtu.

The projected power generation mix remains 28.80 per cent hydro and 71.20 per cent thermal”.

However, Dr Shafic Suleman, the Executive Secretary of the Public Utilities Regulatory Commission (PURC), had earlier revealed that the new utility tariffs will take effect in January 2026, following a stakeholder consultation.

The PURC Executive Secretary highlighted that the adjustment process is aimed at striking a balance between protecting consumers and enabling utility providers to sustain and improve their operations.

According to the PURC, the stakeholder consultations and public hearings would play a significant role in determining the final utility tariff adjustment.

Dr Shafic Suleman, speaking on the issue, stated, “Our objective is to ensure that consumers are not overburdened with high tariffs while at the same time allowing utility providers to invest in keeping the lights on”.

“Keeping the lights on is complex and expensive. But we are working to ensure that investments in utility infrastructure can continue without passing undue hardship onto consumers”, he added.

Meanwhile, the Ghana Water Limited (GWL) and the Electricity Company of Ghana (ECG) are each seeking more than a 200% increase in utility tariffs to meet rising operational costs.

The Ghana Water Limited (GWL) has proposed a jump in water tariff from GH¢5.28 per cubic metre to GH¢20.09 per cubic metre, which is a 281 per cent increase.

The Electricity Company of Ghana (ECG), on the other hand, proposed a 225% increase in its Distribution Service Charge for the 2025 to 2029 tariff period.

The power distribution company is seeking an adjustment from the current GHp19.0875/kWh to an average of GHp61.8028/kWh to restore the company’s financial stability.

Their proposal notes the rising inflation, foreign exchange volatility, and interest rates.

According to ECG projections, its annual revenue requirements are rising steadily, averaging GHS 9.1 billion across the five years.

ECG’s significant tariff review has been necessitated as they expect its operational costs, human resource expenses, depreciation, capital recovery payments, and tax obligations will continue to climb.

The power distribution company, according to reports, is also recommending a wide-ranging set of reforms to the tariff structure, which include the following.

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