PURC, utilities face off over tariff hike proposals

The Public Utilities Regulatory Commission (PURC) has opened consultations on the Multi-Year Tariff Order (MYTO) for 2025–2030, as electricity and water providers press for increases in charges to sustain operations.

At a stakeholder session in Accra, PURC’s Executive Secretary, Shafic Suleman, underscored the central role of government communication officials and the media in shaping public understanding of the tariff framework. He described the MYTO as a “Citizens’ MYTO” that must reflect the aspirations of Ghanaians while balancing utility viability and consumer protection.

“The MYTO is designed to provide predictability for utilities, stability for consumers and confidence for investors. But above all, it belongs to the people of Ghana,” he told participants.

Utilities seek sharp hikes

Three utilities — the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo) and Ghana Water Limited (GWL) — have tabled proposals seeking tariff hikes averaging 690 percent, citing financial strain and the need to guarantee uninterrupted power and water supply.

For starters, ECG is demanding a 239 percent increase in 2025, raising its Distribution Service Charge from 19.08Gp/kWh to 61.80Gp/kWh. The utility argues that cost-reflective tariffs are essential to address system losses, illegal connections and foreign exchange pressures.

NEDCo, which supplies the five northern regions and parts of Oti, is requesting a 171 percent rise, warning that lifeline subsidies are unsustainable. It has recommended scrapping the band altogether and called for a dedicated tariff to fund public lighting.

GWL is seeking a 280 percent increment, citing the need to repay loans, rehabilitate ageing infrastructure and tackle the impact of polluted water sources. The company has outlined over GH¢447million in expenditure, alongside US$1.5million and €8.5million in foreign-denominated costs.

Other utilities – including the Volta River Authority (VRA), Ghana Grid Company (GRIDCo), Ghana National Gas Company (GNGC) and Enclave Power Company (EPC) – have also submitted review requests. GRIDCo alone is seeking to more than double its transmission tariff from 5.64Gp/kWh to 12.97Gp/kWh in 2025 — a 130 percent jump — to support reliable grid operations.

Wider concerns

During the session, Presidential Staffer Nana Yaa Jantuah, who chairs the Utility Review Hearing Committee, warned that illegal mining was worsening water scarcity. “If galamsey is not curbed, the country may soon be compelled to import water,” she cautioned, urging urgent support for government efforts to protect water bodies.

The PURC announced it would begin regional public hearings in the coming weeks, offering consumers the chance to directly question utility firms on their proposals.

While utilities insist the adjustments are necessary to safeguard service delivery, the commission has stressed that any final tariffs must balance affordability with operational sustainability.

“We urge the commission and all stakeholders to consider this proposal favourably,” General Manager in-charge of Financial Plan at ECG, Moses Okley, said.

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