CSOs demand PURC halt July electricity tariff hike
By: Ernest Afram
Two civil society organizations are calling on the Public Utilities Regulatory Commission (PURC) to suspend its planned electricity tariff adjustment scheduled to take effect from July 1, 2025.
The organizations, CUTS International and the Centre for Environmental Management and Sustainable Energy, argue that the proposed 2.45 percent increment in tariffs is unjustified, particularly at a time when Ghana’s macroeconomic indicators have started to show signs of improvement.
According to the West African Regional Director of CUTS International, Appiah Kusi Adomako, the recent appreciation of the Ghanaian cedi and the drop in inflation should have been strong grounds for a downward review in tariffs, rather than an upward adjustment.
“We think that this tariff increase is unjustified because tariffs in Ghana are not determined from virtue; they are based on variables. Ghanaians were even expecting the PURC to announce a substantial tariff reduction. So, it came as a surprise to many when we woke up to the announcement of yet another increase,” Mr. Adomako stated.
He explained that Ghana’s energy generation mix comprises approximately 72 percent thermal and 28 percent hydro. The thermal sources rely on crude oil or natural gas, which are procured on the international market using U.S. dollars.
“In the last tariff review, PURC used an exchange rate of GHS 15.70 to the dollar. Currently, the dollar is trading around GHS 10.31. That’s about a GHS 5 appreciation, or nearly 30 percent improvement in the value of the cedi from the previous quarter. Given that energy generation is heavily reliant on thermal sources, and considering the cost savings from the improved exchange rate, one would have reasonably expected tariffs to be reduced not increased,” Mr. Adomako noted.
The civil society organizations further warned that the tariff hike, if implemented, could place additional financial strain on households and businesses already contending with the pressures of high living costs.
“Electricity costs are a major component of business operations and household expenditure,”. An increase, no matter how small, compounds the burden on consumers, especially when incomes remain stagnant,” Mr. Adomako stressed.
The two organizations are therefore urging the PURC to reconsider its decision and to place affordability, equity, and public interest at the core of its regulatory actions. They are also calling for greater stakeholder engagement and transparency in tariff-setting processes, especially at a time when Ghanaians are facing economic hardship.
The PURC announced the 2.45 percent upward adjustment in electricity tariffs as part of its quarterly review mechanism. The Commission cited rising operational costs of utility providers and the need to sustain service delivery.
However, the CSOs insist that the improved economic climate, especially in relation to exchange rate and inflation trends, provides sufficient room to cushion consumers rather than impose additional costs.
