CSOs call on PURC to slash electricity tariffs in Q3 amid economic gains

Two leading Civil Society Organisations, CUTS International Accra and CEMSME, are urging the Public Utilities Regulatory Commission (PURC) to consult stakeholders. They want these consultations to focus on reducing electricity tariffs for the third quarter of 2025.

In a joint statement today, they highlighted improvements in Ghana’s economy. They noted that declining electricity input costs support their call for lower tariffs. Ghanaians need relief from rising utility bills as the economy recovers.

Appiah Kusi Adomako, West Africa Regional Director for CUTS International, and Benjamin Nsiah, Executive Director of CEMSME, provided key economic indicators. The Ghana Cedi has appreciated by 18% against the US dollar. It went from GHS15.70 to GHS12.93. Inflation has also dropped to 21.2%, down from 22.49%.

While global natural gas prices may rise slightly to USD4.20/MMBTU in Q3, local factors will help cushion this impact. An increase in hydropower generation above 30% could further reduce electricity costs.

“These positive macroeconomic indicators support tariff reduction,” said Adomako. “Lower tariffs would ease financial burdens on households and industries.” This would also help control inflation and promote economic growth.

The organisations reminded PURC of its legal duty under Section 16(3)(a) of the Public Utilities Regulatory Commission Act, 1997 (Act 538). This section requires PURC to protect consumer interests.

They urged the Commission to act transparently and involve all stakeholders in a thorough review process. PURC reviews electricity and water tariffs quarterly based on exchange rates, inflation, and operational costs incurred by utility providers like ECG.

CUTS and CEMSME called for more transparency and accountability from ECG. They criticized ECG for inefficiencies that unfairly shift costs onto consumers.

“PURC must address ECG’s management issues,” emphasized Nsiah. He stressed that future tariff adjustments should be linked to reforms improving service delivery.

Beyond consumer relief, reduced tariffs could have significant economic benefits. Lower electricity costs could boost industrial productivity and job creation while enhancing Ghana’s competitiveness.

This appeal follows a recent 6.52% tariff increase implemented by PURC on May 1, 2025. That increase was based on an exchange rate of GHS15.6974/USD and an inflation rate of 22.49%. It also accounted for unpaid revenue arrears from previous years.

With current economic trends showing improvement, CUTS International Accra and CEMSME believe it is time for PURC to adjust tariffs downward for consumers' benefit.