Minority slams PURC over 3.49% electricity tariff hike
The Minority Caucus on Parliament’s Energy Committee has strongly condemned the Public Utilities Regulatory Commission’s (PURC) decision to increase electricity tariffs by 3.49 percent for the third quarter of 2026, labelling the move as a politically motivated measure lacking economic justification.
Speaking at a press conference on June 22, 2026, PURC announced the upward adjustment, which comes barely a month after the commission had reduced tariffs by 4.81 percent in the second quarter of the year. This rapid reversal has raised concerns about the stability and predictability of Ghana’s energy pricing regime.
Collins Adomako-Mensah, the Deputy Ranking Member on the Energy Committee and Member of Parliament for Afigya Kwabre North, provided critical context to the controversy. He noted that the net effect of PURC’s tariff reviews since January 2025 has been a cumulative increase of 26.82 percent in electricity prices—a trajectory that appears inconsistent with prevailing economic indicators.
Addressing journalists in Parliament, Mr Adomako-Mensah challenged the regulator’s justification for the hike, which cited a 0.2 percent depreciation of the Ghana cedi against the US dollar and a 1.58 percent increase in natural gas costs. He countered that the local currency has actually appreciated by nearly 40 percent against the dollar since January 2025, interest rates have declined from 27 percent to 23 percent, and gas expenses have fallen by 1.58 percent over the same period.
Furthermore, he pointed out that Ghana’s power generation mix has remained unchanged between April and July 2026, undermining the rationale for an upward tariff adjustment at this juncture. The Minority spokesperson warned that the increase would exacerbate the financial burden on electricity consumers and undermine the competitiveness of domestic industries and small and medium-sized enterprises (SMEs).
Drawing a connection to broader economic policy, Mr Adomako-Mensah reminded observers that with Ghana no longer under an International Monetary Fund Extended Credit Facility, the government bears full responsibility for tariff decisions. He emphasized that the current tariff regime reflects policy choices made by the National Democratic Congress (NDC) administration, stating unequivocally that “the power to increase or reduce tariffs is determined by government policy direction, and the buck stops with the government.”
In a pointed metaphor, he concluded: “You cannot keep increasing pressure on the top and hang the baskets of the people of Ghana to fetch water.”
This criticism comes despite recent efforts to stabilize the energy sector, such as the use of fuel levy revenues to clear independent power producer debts, as highlighted in a previous report (/fuel-levy-cash-cleared-ipp-debts-and-restored-ghanas-credit-standing-purc-boss).
Image Source: GHANA BUSINESS NEWS
