The Public Utilities Regulatory Commission (PURC) has approved a 9.86% rise in electricity tariffs for all customer groups and a 15.92% increase in water tariffs, with the new rates set to take effect on January 1, 2026.
This major adjustment, which will apply from 2026 to 2030, aligns with the Commission’s Multi-Year Tariff Review Order (MYTO) framework.
The decision follows extensive consultations, including investment hearings, engagement with stakeholders, and regional public forums. In its review, the PURC considered the investment needs of utility companies, industry competitiveness, and the overall living conditions of consumers.
Key Drivers of the Tariff Review
The PURC attributed the increases to major shifts in macroeconomic conditions and changes in the country’s power generation mix. Under the approved parameters for the 2026–2030 MYTO cycle, thermal generation is expected to make up 78.79% of the energy mix, while hydro generation will fall to 20.90%. The PURC also set an exchange rate of GH¢12.0067 to US$1 and an inflation rate of 8.00% for the period.
The Commission stated that the new rates will undergo quarterly reviews to account for factors beyond the utilities’ control, including fluctuations in the cedi-dollar exchange rate, domestic inflation, and the weighted average cost of gas (WACOG).
A new policy measure has also been introduced to factor in the cost of supplying electricity to island communities through mini-grids, as part of efforts to ensure universal access to electricity nationwide.
Source: 3news
