Policy think tank CUTS International has backed the recent increases in electricity and water tariffs, describing the adjustments as necessary to sustain the operations of utility service providers.
The endorsement follows the Public Utilities Regulatory Commission’s (PURC) announcement of upward tariff reviews on Monday, June 22, with consumers expected to pay more for electricity and water services from July 1, 2026.
Under the third-quarter tariff adjustment, electricity tariffs have been increased by 3.49 percent, while water tariffs have gone up by 0.85 percent.
The PURC explained that the decision forms part of its quarterly review mechanism, which takes into account key economic and operational factors affecting utility providers.
Speaking to Citi News, the West African Regional Director of CUTS International, Appiah Adomako Kusi, noted the adjustments were driven largely by macroeconomic pressures, including the depreciation of the cedi, inflationary trends, and rising fuel costs.
He explained that a significant portion of Ghana’s power generation depends on fuel sources priced in dollars, meaning fluctuations in the exchange rate directly affect production costs.
“This boils down on the cedi exchange rate, inflation and also the price of gas. With regards to the cedi to the dollar, I think it has been kind of done bad over the last quarter and for that reason there should be an adjustment.
“As you know, about 71% of our generation comes from crude or gas and this has a dollar component to it and so anytime the dollar goes up, it also affects how much we should pay. For us as an organization, whilst it may be painful for consumers with regards to this adjustment, we think that it’s also necessary to get the power sector running,” he said
Mr. Kisi, however, urged the PURC to ensure that the tariff increases translate into improved service delivery, stressing that consumers must see value for money.
“One thing that we have seen is that, there’s not much relationship between how much we pay or tariff increment and quality of service. This is something that PURC has not been able to achieve for consumers.
“Light goes off and comes without any notice and I think that PURC should ensure that the utility companies are able to do what is required of them,” he said.
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