Energy Ministry Backs 9% Tariff Hike to Protect Utilities

The Ministry of Energy and Green Transition has defended the 9% increase in electricity tariffs announced by the Public Utilities Regulatory Commission (PURC), slated to take effect in January 2026. The decision comes amidst concerns voiced by the Trades Union Congress (TUC).

Speaking on Joy FM’s Top Story on Monday, December 8, Ministry spokesperson Richmond Rockson acknowledged the public’s likely resistance to tariff adjustments. However, he firmly stated that the increment is vital for the financial stability of utility providers and the continued investment in essential infrastructure.

“Generally, taxes, levies, and tariff adjustments are met with pushback, so, understandably, TUC will raise concerns. However, PURC’s decision is essential to meet the capital and investment needs of utilities, support their asset base, and fund infrastructure projects over the coming years,” Mr Rockson explained.

He highlighted that the current 9% increase represents a significant reduction compared to the over 27% adjustment implemented previously. This improvement, he credited, is a direct result of reforms spearheaded by Energy Minister Hon. John Jinapor and the country’s ongoing economic recovery.

The Ministry further detailed several ongoing initiatives aimed at strengthening the power sector. These include enhanced revenue collection by the Electricity Company of Ghana (ECG), strict adherence to the Cash Flow Waterfall Mechanism, prompt payments to Independent Power Producers (IPPs), and increased transparency in procurement processes.

Mr Rockson emphasized the critical importance of sustained capital expenditure in maintaining the recent stability within the power sector. He stated that continued investment is necessary to minimize technical and commercial losses and to adequately address the growing demand for electricity across Ghana.

“Sustained investment in capital expenditure is crucial if we are to maintain this stability and ensure reliable power for all Ghanaians,” he said.

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