‘PURC utility tariff hikes do not make mathematical sense’ – Minority fumes demands 6% reduction

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Collins Adomako-Mensah

The Minority in Parliament has rejected the Public Utilities Regulatory Commission’s (PURC) proposed tariff adjustments planned from July 1, 2026.

The Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako-Mensah, says the PURC utility tariff hikes do not make mathematical sense.

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According to the Minority in parliament, they expected utility tariffs to be reduced by about 6 per cent, arguing that the proposed upward adjustment would place an additional burden on households and businesses.

Collins Adomako-Mensah also highlighted that the proposed tariff adjustment contradicts reports that quarterly increases in utility tariffs were part of the IMF programme agreement entered into under the former Akufo-Addo administration.

Speaking to Citi News, the Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako-Mensah, stated, “How does just a change of exchange rate of 0.2% push you to increase electricity by close to 4%? It just does not add up. And I’m surprised that PURC is doing this to us. I’m totally surprised. Cumulatively, they’ve increased electricity by 31.69% from January 2025 to date.

“It was just the first and second quarters of this year that they reduced it by 4%. Even that, we challenge that. I’m surprised that PURC is doing this to the Ghanaian people. This particular increment, based on the figures that we’ve seen, does not make mathematical sense to me at all,” he said.

His comments come on the heels of the PURC announcing an upward adjustment in electricity and water tariffs.

According to the PURC, consumers are set to pay more for utility services from July 1, 2026, with electricity tariffs increased by 3.49 per cent across the board, while water tariffs have been adjusted upward by 0.85 per cent.

The PURC disclosed that the adjustments were made in line with its mandate to undertake quarterly tariff reviews.

The Commission, the adjustments reflect changes in key economic indicators, including the cedi-to-dollar exchange rate, inflation, the electricity generation mix, and the cost of natural gas used in power generation.

In a statement issued on Monday, June 22, PURC explained that the quarterly adjustments are intended to maintain the real value of tariffs and ensure that utility providers deliver reliable services to consumers.

“The Commission applied a weighted average exchange rate of GHS11.2228 to one US dollar for the third quarter of 2026, representing a 0.2 per cent depreciation of the cedi compared to the previous quarter.

It also used a three-month average inflation rate of 3.43 per cent, down from 4.17 per cent in the second quarter, while the weighted average cost of natural gas declined by 1.58 per cent to USD7.9708 per MMBtu.

The hydro-thermal generation mix remained unchanged at 20.9 per cent hydro and 79.1 per cent thermal generation.

Based on the combined impact of these indicators, PURC approved a 3.49 per cent increase in electricity tariffs for residential, non-residential and special load tariff customers.

For residential consumers, the lifeline tariff for users consuming up to 30 kilowatt-hours monthly increased from 86.9Gp per kilowatt-hour to 89.93Gp per kilowatt-hour”, reports stated.

Also, Water tariffs were adjusted upward by 0.85 per cent across all customer categories.

“Under the revised rates, the residential lifeline tariff for water consumption of up to five cubic metres rose from 593.49Gp per cubic metre to 598.54Gp per cubic metre”.

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