The Public Utilities Regulatory Commission (PURC) has announced an upward adjustment in electricity and water tariffs, set to take effect on May 3, 2025.
This decision follows the Commission’s quarterly tariff review process for the first and second quarters of 2025, aimed at ensuring revenue stability for utility service providers while minimizing the financial impact on consumers.
According to the PURC, the new rates will see electricity tariffs increase by an average of 14.75%, while water tariffs will go up by 4.02%.
The Commission attributed the adjustments to several factors, including fluctuations in the exchange rate between the Ghana cedi and the US dollar, inflation projections, fuel costs (particularly natural gas), and the current hydro-thermal generation mix.
The PURC also highlighted the need to recover 50% of outstanding revenue, amounting to GHS976 million, from previous quarters in 2024. This repayment obligation has significantly influenced the upward adjustment.
“The tariff increments are essential to addressing under-recoveries by utility companies, which, if unaddressed, could result in service disruptions,” the Commission emphasized.
To mitigate the burden on consumers, the remaining 50% of the outstanding revenue will be spread over subsequent quarters in 2025. The PURC underscored its commitment to balancing the interests of both consumers and utility providers amid ongoing economic pressures.
In a statement issued on Friday, April 11, the Commission explained that the tariff increments are necessary to ensure the financial sustainability of utility service providers. Despite the increase, the PURC emphasized its dedication to protecting consumer interests.
The full details of the tariff adjustments will be published in the government gazette and made available on the Commission’s official website for public access.
