CSOs urge PURC to engage stakeholders for electricity tariff reduction in Q3 2025

CUTS International Accra and the Center for Environmental Management and Sustainable Energy (CEMSME) are urging the Public Utilities Regulatory Commission (PURC) to start consultations. They want to reduce electricity tariffs for the third quarter of 2025.

This request comes due to improvements in macroeconomic conditions and lower electricity input costs. The organizations believe these factors should lead to lower tariffs for consumers in Ghana.

In a joint statement, CUTS International's West Africa Regional Director and CEMSME's Executive Director highlighted positive changes. The Ghana Cedi has appreciated by about 18% against the US dollar. It moved from GHS15.70 to GHS12.93 in the second quarter, with further appreciation likely before the third quarter.

Inflation has decreased to 21.2%, down from 22.49%. This was the rate used for setting tariffs in earlier quarters, with expectations of further reduction by June 2025. Although natural gas prices may rise to USD4.20/MMBTU, a stronger Cedi could offset this impact on end-user tariffs.

Additionally, hydropower's share in electricity generation might exceed 30%, potentially lowering costs even more.

“These positive macroeconomic indicators support tariff reduction,” said Adomako.

“Lower electricity tariffs would ease financial pressures on households and industries.” He added that this would help curb inflation and promote long-term consumer welfare.

The statement emphasized PURC’s legal duty under Act 538 to protect consumer interests. “The Commission must act transparently and engage stakeholders,” it stated, ensuring Ghanaians benefit from economic gains.

PURC is required to review electricity and water tariffs quarterly based on macroeconomic factors like exchange rates and inflation. These factors directly affect consumer tariffs beyond providers' control.

The organizations stressed that the Cedi’s appreciation should provide relief for consumers. For industries, reduced tariffs would lower production costs, stabilize prices, and boost economic growth.

CUTS International Accra and CEMSME also called for more transparency in tariff reviews. They expressed concern over ECG’s inefficiencies that unfairly burden consumers.

“PURC must address ECG’s management issues,” Nsiah stated, linking future tariff reviews to reforms that improve efficiency.

The organizations urged PURC to enhance stakeholder engagement during the review process, prioritizing consumer interests.

They noted that reducing tariffs could have broader economic benefits as well. Lower electricity prices could stimulate industrial growth, create jobs, and improve Ghana’s competitiveness regionally.

They called on PURC to act proactively during this favorable economic climate for both residential and commercial consumers.

On April 11, 2025, PURC announced a 6.52% increase in electricity tariffs effective May 1, based on projected exchange rates and inflation rates at that time.

This decision included half of outstanding revenue arrears from 2024 totaling GHS488.42 million, resulting in a cumulative tariff hike of 14.75% for early 2025 quarters.

Given current economic improvements, CUTS International Accra and CEMSME urge PURC to reverse this trend by adjusting tariffs downward for consumer relief.