PURC raises electricity and water tariffs effective January 2026; here’s how much you’ll be paying
The Public Utilities Regulatory Commission (PURC) has announced the increase in electricity and water tariffs following the completion of its 2026–2030 Multi-Year Tariff Review (MYTO)
In a statement issued Tuesday December 2, 2025 and signed by the new Executive Secretary of PURC, Dr Shafic Suleman, clarified that the review was carried out in line with sections 3, 16, 17, 18, 20 and 21 of the PURC Act, 1997 (Act 538).
The Public Utilities Regulatory Commission (PURC) stated that the new rates will be implemented on January 1, 2026.
This tariff decision is the result of a regulatory process that involved months of investment hearings, stakeholder consultations, and regional public forums held across the country.
According to PURC, there will be a 9.86% increase in electricity tariffs across all customer categories.
The Commission says that the adjustment is necessary to reflect the investment requirements of power utilities, anticipated generation costs, and key macroeconomic factors. These factors include the rate of inflation, the cedi–US dollar exchange rate, and the price of natural gas.
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The review encompassed operational expenses and the regulated asset base for utilities over the next five years. Quarterly tariff reviews will persist to account for factors outside the utilities' control, such as generation mix and fuel costs.
The Public Utilities Regulatory Commission (PURC) states that water tariffs are set to rise by 15.92% over the five-year period from 2026 to 2030.
According to the PURC, the adjustment is necessary, considering factors such as projected production and sales volumes, non-revenue water levels, required capital investments, and current macroeconomic conditions.
This tariff adjustment is based on several factors, including:
1. Projected production and sales volumes.
2. Non-revenue water levels.
3. Expected capital investment requirements.
4. Prevailing macroeconomic conditions.
Under this new tariff structure:
1. Charges for residential consumers will increase across all consumption bands.
2. Non-residential, commercial, industrial, and public institutions will also face higher rates.
3. Service charges will generally remain unchanged.
A significant inclusion in the Multi-Year Tariff Order (MYTO) is the incorporation of tariffs for mini-grids that supply island and remote communities. To ensure streamlined implementation, the cost of supplying these communities at the uniform national rates has been included in the revenue requirement of the Volta River Authority (VRA).
The PURC said several factors influenced the new tariffs, including:
1. Projected electricity generation mix: Thermal at 78.79%, hydro at 20.90%, and renewables at 0.31%.
2. Weighted Average Cost of Gas (WACoG) increased to US$7.8749/MMBtu.
3. Improved targets for transmission and distribution system losses.
4. Inflation rate assumption of 8% and an exchange rate projection of GHS 12.01 to US$1.
The Public Utilities Regulatory Commission (PURC) stated that the new tariffs were determined by several critical variables in both the electricity and water sectors.
In the water sector, the Commission took into account:
Non-Revenue Water: Levels were projected to decrease to 43%.
Operational Updates: Revised expectations for production and sales in the coming years were considered.