Electricity Tariffs up by 9.86% and Water by 15.92% Effective January 2026 — PURC
By Praisebell Rosemond Larbi
The Public Utilities Regulatory Commission (PURC) has announced significant upward adjustments in electricity and water tariffs, set to take effect on January 1, 2026, following the completion of its 2026–2030 Multi-Year Tariff Review (MYTO). The adjustments come after months of investment hearings, stakeholder engagements and regional public forums conducted across the country as part of the Commission’s regulatory process.
In its latest tariff decision, the PURC said the increases are necessary to sustain operations within the utility sector, support long-term capital investments, and stabilise service delivery in the face of evolving economic and industry-wide pressures.
Electricity Tariffs to Rise by 9.86%
Electricity tariffs for all categories of consumers will go up by 9.86%. According to the PURC, the adjustment reflects the projected investment needs of power utilities, expected generation inputs, and key macroeconomic indicators such as inflation, the cedi-US dollar exchange rate and natural gas pricing.
The Commission explained that the review also covered the regulated asset base of utility companies and operational cost requirements over the next five-year period. Quarterly tariff reviews will continue under the automatic adjustment mechanism, allowing for periodic corrections based on factors beyond the utilities’ control, including fuel costs and changes in generation mix.
Water Tariffs Up 15.92%
Water tariffs will rise even further, by 15.92%, over the 2026–2030 review period. The increase, the PURC noted, was influenced by projected production and sales volumes, levels of non-revenue water, capital investment obligations and prevailing macroeconomic conditions.
Under the revised structure, residential and non-residential consumers will experience higher charges across various consumption bands, while service charges remain largely unchanged. Industrial, commercial and public institutions will also see their tariffs adjusted upward.
Mini-Grid Tariffs Introduced for the First Time
For the first time, the MYTO includes tariffs for mini-grids operating in remote and island communities. The cost of supplying electricity to these areas at uniform national rates has been factored into the Volta River Authority’s (VRA) overall revenue requirement, enabling smoother implementation of the programme.
Key Variables Driving the New Tariffs
The PURC highlighted several underlying factors influencing the tariff decisions. These include:
• A projected electricity generation mix comprising 78.79% thermal, 20.90% hydro and 0.31% renewable energy.
• An increase in the Weighted Average Cost of Gas (WACoG) to US$7.8749/MMBtu.
• Improved targets for reducing transmission and distribution losses across the power system.
• An inflation assumption of 8% and an exchange rate projection of GHS 12.01 to US$1.
For the water sector, non-revenue water is projected to decline to 43% while updated production and sales targets were factored into the tariff model.
The PURC maintains that the new tariffs are essential to ensuring sustainable, reliable and financially viable utility services over the next five years.
