IMF endorses utility tariff hike as crucial step for stabilizing energy sector

The International Monetary Fund (IMF) has endorsed the Public Utilities Regulatory Commission’s (PURC) recent increase in utility tariffs, describing it as essential for the financial sustainability of state-owned enterprises (SOEs), especially the Electricity Company of Ghana (ECG).

The tariff adjustment includes a 14.75% rise in electricity charges and a 4.02% increase in water tariffs across all consumer categories.

IMF Mission Chief Stephane Roudet, speaking during a joint press briefing with the Bank of Ghana and the Finance Ministry, said the decision aims to ensure ECG can pay power producers and deliver consistent electricity to consumers.

While acknowledging the strain on vulnerable households, Roudet stressed the IMF’s commitment to assisting the government in developing targeted social interventions to cushion the impact. The PURC, meanwhile, maintains that consumers are receiving value despite complaints over erratic power and water supply.

The tariff hike forms part of broader reforms to stabilise Ghana’s energy sector under the ongoing IMF programme.