Ghana’s Public Utilities Regulatory Commission (PURC) announced Friday that electricity tariffs will increase by 1.14% for all customer categories beginning October 1, 2025, while water tariffs will remain unchanged for the same period.

The adjustment follows the Commission’s Quarterly Tariff Review Mechanism, which accounts for macroeconomic indicators that affect the cost of utility delivery, including the cedi-to-dollar exchange rate, domestic inflation, fuel costs, and the electricity generation mix.

In a statement signed by Acting Executive Secretary Shafic Suleman, the Commission said the review is intended to maintain the real value of tariffs and ensure the financial viability of utility providers.

“The Commission has taken into account all key variables affecting the cost of electricity production and distribution to arrive at this marginal increase,” the statement said.

Key figures underpinning the review include:

• Exchange rate: GHS12.3715 per US$1, including a Q3 under-recovery of GHS0.3980 per US$1
• Inflation: 12.43% (annual average projection for Q4)
• Natural gas cost: $7.7134 per MMBtu
• Power generation mix: 28.80% hydro, 71.20% thermal

The Commission emphasized that no adjustment will be made to water tariffs during this review period, maintaining current rates amid broader cost containment efforts.

The tariff changes come at a time when Ghana is managing a delicate economic balance. The cedi has faced depreciation pressures, and inflation, while easing, remains a challenge for policy makers. The modest increase in electricity tariffs reflects efforts to preserve investor confidence in the utilities sector while limiting consumer burden.

The PURC said it will continue monitoring utility providers to ensure regulatory compliance and service quality, stating that “financial stability and operational efficiency” remain central to its mandate.

Ghana’s last major tariff review occurred earlier this year, with similar cost-reflective adjustments. The Commission has pledged to maintain a predictable and transparent review process amid ongoing economic volatility.

Source:TheDotNews