Electricity tariffs up 1.14% from Oct; water rates unchanged    

By Kizito CUDJOE

The Public Utilities Regulatory Commission (PURC) has announced that it will increase electricity tariffs by 1.14 percent effective October 1 while keeping water charges unchanged, citing the impact of currency pressures, inflation and fuel costs on service providers.

According to PURC, the modest adjustment follows its quarterly review mechanism which tracks movements in factors beyond the control of providers – such as the cedi-dollar exchange rate, cost of natural gas and the generation mix between hydro and thermal sources.

“This adjustment is necessary to maintain the financial viability of utility service providers and ensure they can continue deliverING reliable services to consumers,” PURC said in a statement.

The country has faced recurring challenges in its power sector, with a heavy reliance on thermal generation that makes tariffs sensitive to global fuel prices and currency depreciation. The cedi has weakened sharply in recent months, trading at an interbank average of GH?10.7 to the U.S. dollar during the third quarter with the regulator projecting an exchange rate of GH?11.97 for the year’s final quarter.

The Commission also said it used an annual average inflation rate of 12.43 percent in its calculations and approved a weighted average gas cost of US$7.71 per Million British Thermal Units (MMBtu). Hydro sources are expected to contribute about 29 percent of the generation mix, with thermal plants making up the balance.

“In view of the Hydro-Thermal Generation Mix’s overall impact, Ghana cedi-US dollar Exchange Rate, Inflation Rate and Natural Gas Price – and the impending major tariff review under the Multi-Year Tariff Order (MYTO) to be announced before end of the year – the Commission has taken a decision to adjust Electricity Tariffs by 1.14 percent across the board for all customer categories for fourth-quarter 2025,” said the statement signed by Executive Secretary-PURC Dr. Shafic Suleman.

Utility service providers at a recent public hearing by PURC recognised the burden tariff adjustments place on consumers, but they noted that it is crucial to prevent disruptions in electricity supply and support ongoing improvements in service delivery.

“The Commission will continue to monitor operations of the regulated service providers and hold them accountable to its regulatory standards and benchmarks in ensuring value for money and improved quality of service delivery,” the statement added.

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