Minority to drag PURC before Parliament over July 1 power tariff hike

The Minority Caucus in Parliament has announced plans to summon the Public Utilities Regulatory Commission (PURC) over the recently announced electricity tariff hike set to take effect on 1st July 2025.

According to the Caucus, the move is intended to seek further clarification from the Commission regarding the 2.45% increase, which they described as “unacceptable.” They argue that key economic indicators — including gas prices, exchange rates, and inflation — have shown signs of stability and should not warrant a tariff adjustment.

In a statement issued on Tuesday, 25th June and signed by PURC Executive Secretary, Dr Shafic Suleman, the Commission explained that the new pricing reflects a weighted average exchange rate of GHS10.3052 to the US dollar, a projected inflation rate of 20.67%, and an increase in the Weighted Average Cost of Gas (WACoG) from USD 7.6289/MMBtu to USD 7.7134/MMBtu.

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The statement also cited a GHS488 million revenue shortfall carried over from the previous three quarters, the inclusion of reserve capacity to ensure grid stability, and 27% of the cost of alternative fuels such as Distillate Fuel Oil (DFO), Heavy Fuel Oil (HFO), and Light Crude Oil (LCO) as factors influencing the tariff adjustment.

However, during a news conference on Thursday, 26th June, the Ranking Member on Parliament’s Energy Committee, George Kwame Aboagye, questioned the basis for the hike.

Gas prices have not gone up. The exchange rate is declining. The highest exchange rate this year was around 15.5 to the dollar; it’s currently at 10.30. So why increase tariffs?

He further added:

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Inflation in March was 22.4%. In April, it was 21.2%. May saw 18.4%, and projections for June suggest it may drop to around 16%. All the indicators are declining. There’s no justification for an increase. We are therefore calling on PURC to come forward and explain to Ghanaians.

Mr Aboagye disclosed that the Minority will officially summon PURC management through the Committee Chairman to appear before Parliament and provide detailed explanations for the tariff hike.