African trade ministers meet today over US tariffs affecting exports
PURC increases electricity and water tariffs by 14.75%, 4.02% respectively
PURC increases electricity and water tariffs by 14.75%, 4.02% respectively
By: Nii Ammui Fio | 2 mins read
Businesses and the average consumers in Ghana will experience an increase in electricity and water tariffs starting May 3, in the second quarter of the year.
The Public Utilities Regulatory Commission (PURC) has announced a 14.75% hike in electricity tariffs and a 4.02% increase in water tariffs for all users across the country.
This decision comes after PURC completed its routine tariff adjustment process for the first and second quarters of the year. The quarterly review is part of efforts to prevent financial losses in the utility sector and to ensure stable electricity and water supply.
The PURC explained that the review was necessary due to key economic factors like the cedi-to-dollar exchange rate, inflation, fuel prices (especially gas), and how electricity is being generated either by water (hydro) or by burning fuel (thermal).
"For the second quarter of 2025, we used a dollar exchange rate of GHS15.6974 and an inflation rate of 22.49%," the Commission stated.
Another major reason behind the tariff increases is the need to recover part of a huge debt owed to utility companies from last year.
The PURC said a total of GHS976 million was left unpaid from the last three quarters of 2024. Instead of pushing the entire burden on consumers at once, the Commission has decided to recover only half of that amount this quarter, with the rest to be paid gradually in the coming months.
“If we had tried to recover the full amount in one go, the increases would have been much higher,” the commission explained. “We are mindful of the current economic difficulties faced by Ghanaians.”The increment comes amid ongoing economic challenges. The cedi has remained relatively stable, trading around GH₵15.53 per US dollar as of April 10, 2025. Inflation has eased to 22.4% in March 2025, down from a peak of 54.1% in December 2022 .
The Association of Ghana Industries (AGI) has expressed concerns that high utility costs are forcing some companies out of business .
For households, especially low-income ones, higher utility bills may strain budgets already stretched by rising living expenses .
But the Public Utilities Regulatory Commission (PURC) justifies that the increase is needed to help utility companies stay afloat. Without these adjustments, the companies will not have enough money to continue providing electricity and water.
“Just like any other business, utility companies need to adjust their prices from time to time to keep running,” the statement said. “This is about making sure we can keep the lights on and the taps running.”The Commission added that it always tries to strike a balance between protecting consumers from high costs and making sure utilities get enough funds to operate effectively.
