PURC increases electricity and water tariffs amid public outcry

The Public Utilities Regulatory Commission (PURC) has implemented new tariff adjustments, increasing electricity prices by an average of 14.75% and water rates by 4.02% for all consumer categories.

The decision, aligned with the Commission’s quarterly tariff review framework, aims to maintain financial sustainability in utility service provision.

In an official statement, the PURC cited four critical factors influencing the adjustment:

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• Exchange rate fluctuations (Cedi/US Dollar)

• Inflationary pressures

• Changes in electricity generation mix

• Fuel costs (primarily natural gas) for power production

The Commission emphasised that the revision seeks to balance revenue recovery, preventing both excessive over-recovery and detrimental under-recovery by utility providers.

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This marks the second adjustment within a year, following July 2023’s increases of 4.22% for electricity and 1.18% for water.

Cumulatively, consumers now face an 18.97% rise in electricity tariffs and a 5.20% hike in water costs over the past 10 months—further burdening households amid ongoing economic challenges.

The PURC defended the move, citing significant revenue shortfalls that have led to severe financial strain on utility companies. Without these adjustments, the Commission warned, service providers risk operational collapse.

Notably, the statement clarified that the increases could have been steeper had the PURC pursued full recovery of accumulated deficits from previous quarters, indicating a measured approach to the tariff revisions.

The latest adjustment takes immediate effect, with the Commission reaffirming its commitment to balancing affordability with the long-term viability of Ghana’s utility sector.

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The recent utility tariff increases of 14.75% for electricity and 4.02% for water announced by the PURC will have wide-ranging effects across Ghana's economy and society.

For households, the hikes will squeeze already tight budgets, forcing families to allocate more income to utility bills at the expense of other essentials like food, education, and healthcare.

Low-income consumers may be pushed into energy poverty, potentially resorting to unsafe alternatives like illegal connections or charcoal use.

Businesses, particularly manufacturers and SMEs, face higher operational costs that could lead to price increases across goods and services, reduced production capacity, or even layoffs.