Two leading civil Society Organisations have criticised the Public Utilities Regulatory Commission (PURC) for its recent decision to increase electricity tariffs by 2.45%, citing a lack of transparency, inadequate stakeholder engagement, and a disregard for economic indicators that should have warranted a reduction.
The condemnation follows PURC’s announcement on June 25, 2025, of a 2.45% increase in electricity tariffs across all consumer categories, effective July 1, 2025, as part of its routine quarterly review. However, water tariffs remain unchanged for the third quarter of the year.
In a joint statement, CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSE) accused PURC of violating Section 3(c) of Act 538 of 1997, which mandates fair utility pricing for the mutual benefit of the government, producers, and end-users.
Appiah Kusi Adomako, West Africa Regional Director of CUTS International, and Benjamin Nsiah, Executive Director of CEMSE, argued that the Commission’s decision ignores key macroeconomic improvements that should have translated into relief for consumers.
They pointed to the over 30% appreciation of the Ghanaian Cedi between the first and second quarters of 2025—from GH¢15.70 to GH¢10.31 per US dollar—which they say generated a GH¢1 billion windfall for government and utility providers. This surplus, they argued, could have been used to clear arrears or reduce consumer costs, rendering the tariff hike unjustifiable.
The CSOs also criticised the PURC for relying on an outdated inflation rate of 20.67%, rather than the current 18.4%, noting that falling inflation lowers operational costs and should benefit consumers.
Additionally, they described the increase in the Weighted Average Cost of Gas (WACOG) by only $0.08 (1%) as too insignificant to warrant a tariff hike. They cited a previous instance in 2024 when a 25% rise in gas costs led to only a 3.5% increase in tariffs, making the current adjustment appear economically indefensible.
The statement further questioned the PURC’s justification of GH¢488 million in arrears, pointing out the Commission’s failure to explain how the cedi appreciation windfall was utilised. They also accused PURC of excluding stakeholders from the decision-making process, particularly in introducing fuel costs and reserve margins into the tariff without public disclosure or consultation. The CSOs noted the lack of transparency regarding the 27% fuel cost component, for which no data, simulations, or procurement details were shared.
Warning of long-term consequences, the CSOs said continued upward tariff adjustments could entrench inefficiencies in Ghana’s power sector and unjustly burden consumers.
“If care is not taken, PURC’s frequent upward tariff adjustments could succeed in the creation of an energy sector that is not efficient,” the statement read.
They called on the President of Ghana to immediately halt the 2.45% tariff increase and demanded full disclosure of the tariff adjustment methodology and the assumptions that informed the Commission’s decision.
PURC announces 2.45% increase in Electricity tariffs from July 1
