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

The Ghana Cedi has appreciated by about 18% against the US dollar. It moved from GHS15.70 to GHS12.93 in the second quarter. Further appreciation is likely before the third quarter begins.

Inflation has decreased to 21.2%. This is down from 22.49%, which was used for tariff setting in previous quarters. There is a chance of further reduction by June 2025.

Natural gas prices are expected to rise to USD4.20/MMBTU in the third quarter. However, government subsidies on WACOG will offset this increase by about USD0.83/MMBTU. The stronger Cedi may help keep end-user tariffs stable.

Hydropower's share in electricity generation could exceed 30%. This may lower costs even more.

“These positive macroeconomic indicators support tariff reduction,” said Adomako. Lower electricity tariffs would ease financial pressures on households and industries, helping curb inflation and improve consumer welfare.

The statement highlighted PURC’s legal duty under the Public Utilities Regulatory Commission Act 1997 (Act 538). Section 16(3)(a) mandates protecting consumer interests transparently while engaging stakeholders.

PURC must review electricity and water tariffs quarterly. These reviews reflect changes in exchange rates, inflation, and operational costs of utility providers like ECG.

Factors beyond providers' control directly affect consumer tariffs. The organizations stressed that the Cedi’s appreciation should provide real relief for consumers and industries alike.

CUTS International Accra and CEMSME called for more transparency in tariff reviews. They expressed concerns over ECG’s inefficiencies, including commercial losses that burden consumers unfairly.

“PURC must address ECG’s management issues,” Nsiah stated. Future tariff reviews should link to reforms that enhance efficiency and service delivery.

The organizations urged PURC to engage stakeholders more deeply during reviews, ensuring inclusivity and prioritizing consumer interests.

They noted that lower tariffs could benefit the economy broadly. Reduced electricity costs might stimulate industrial growth, create jobs, and boost Ghana's competitiveness regionally.

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

Background

On April 11, 2025, PURC announced a 6.52% increase in electricity tariffs effective May 1, 2025. This decision was based on a projected exchange rate of GHS15.6974/USD and an inflation rate of 22.49%.

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

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