Ghana: PURC Justifies Electricity And Water Tariff Hikes — Says Utility Service Providers Need $320m To Cut Losses

Ghana’s economic regulator for electricity and water, the Public Utilities Regulatory Commission (PURC), has justified its recent approval of a 9.86% and 15.92% upward adjustment in electricity and water tariffs, respectively, set to take effect from January 1 to the end of March 2026.

The Commission’s decision has attracted criticism from sections of the public, including the Trade Union Congress (TUC), which argues that the increases will further burden already struggling Ghanaian workers and has called for an immediate reversal.

However, briefing Parliament on Wednesday, December 10, 2025, on the rationale behind the tariff hikes, Acting Executive Secretary of PURC, Dr. Shafic Suleman, stated that the utility service providers will require a capital investment of $320 million to reduce distribution and commercial losses within their networks.

He suggested that the amount could be mobilised through public-private partnerships (PPPs) to strengthen the operational efficiency of the utilities.

Dr. Suleman explained that while quarterly tariff reviews are influenced by factors such as inflation, exchange rate movements, and the hydro-thermal generation mix, the latest adjustment falls under the multi-year tariff framework, which considers the investment needs of the utilities over a three-to-five-year period.

“The recent upward adjustment is a multi-year tariff and not the quarterly one,” he clarified, adding that the Commission would soon publish a decision note outlining the factors considered in the review.

Responding to concerns from Members of Parliament (MPs) about inadequate stakeholder engagement, Dr. Suleman emphasised that the PURC had held consultations in 10 regions, engaged the Parliamentary Committees on Energy and Sanitation, and planned further meetings with the leadership of both the Majority and Minority Caucuses.

Some MPs, however, raised concerns about the poor quality of services delivered by the utility companies, citing frequent interruptions in water supply and the issuance of high monthly bills despite prolonged periods of non-flow in many households.

Dr. Suleman assured Parliament that the PURC remained committed to balancing the interests of consumers and service providers while ensuring sustainable investment in the utilities sector.