The Public Utilities Regulatory Commission (PURC) has announced a 2.45% increase in electricity tariffs for all consumer categories, effective July 1, 2025, as part of its Quarterly Tariff Review Mechanism.
In a statement released on Wednesday, June 25, the Commission explained that the adjustment is essential to maintain the real value of tariffs in light of economic fluctuations and to ensure the financial sustainability of service providers. The water tariffs, however, will remain unchanged for the third quarter of the year.
The PURC’s Quarterly Tariff Review Mechanism evaluates critical macroeconomic indicators and sector-specific factors such as the cedi-to-dollar exchange rate, inflation, the electricity generation mix, and fuel pricing, primarily natural gas. These elements directly influence the cost of producing and distributing electricity across the country.
Key Variables Behind the Adjustment:
- Exchange Rate: GHS10.3052 per US dollar
- Inflation: 20.67% projected average for the year
- Natural Gas Price: Up to USD 7.7134/MMBtu from USD 7.6289/MMBtu in Q2
- Hydro-Thermal Generation Mix: 28.8% hydro, 71.2% thermal
- Outstanding Revenue: GHS488 million carried over from previous quarters
- Reserve Capacity: Included to enhance grid stability and reliability
- Alternative Fuel Costs: 27% inclusion for DFO, HFO, and LCO
New Electricity Tariffs:
- Lifeline Customers (0–30 kWh): Up from 77.6274 to 79.5308 GHp/kWh
- Residential (301+ kWh): Up from 232.3892 to 238.0873 GHp/kWh
- Non-Residential (301+ kWh): Up from 197.3338 to 202.1723 GHp/kWh
- High Voltage Mines: Increased from 495.9255 to 508.0854 GHp/kWh
Service charges across all categories remain unchanged, ensuring some level of relief for consumers despite the upward review.
Water Tariffs Remain Unchanged:
In a move aimed at cushioning the public, the PURC has maintained water tariffs at current levels for all categories—residential, non-residential, commercial, industrial, and institutional. The Commission emphasized its commitment to balancing affordability and quality service in the water sector.
The Commission thanked all stakeholders for their continuous engagement and reassured the public of its intent to hold utility providers accountable. It emphasized its regulatory role in ensuring consumers receive value for money and improved service delivery across the board.
As Ghana continues to navigate economic pressures and infrastructure demands, the PURC’s latest review reflects ongoing efforts to align utility pricing with real market conditions while minimizing the burden on end users.
