Energy Ministry Defends 9% Tariff Hike as Modest Compared to Previous 27% Increase

The Ministry of Energy and Green Transition has defended the recent 9% electricity tariff increase announced by the Public Utilities Regulatory Commission (PURC), set to take effect in January 2026. The Ministry has responded to criticisms leveled by the Minority in Parliament.

Richmond Rockson, Spokesperson and Director of Communication for the Ministry, cautioned the Minority against what he termed the politicisation of the adjustment. He stated that the current government inherited a power sector burdened by significant challenges during a Monday, December 8, appearance on Joy FM’s Top Story.

According to Mr Rockson, the previous administration left behind over GH¢80 billion in debts owed by the Electricity Company of Ghana (ECG) and US$1.7 billion to Independent Power Producers (IPPs). He further cited systematic mismanagement, revenue under-declaration through the Cash Waterfall Mechanism, questionable procurement practices, and frequent shortages of liquid fuels for thermal plants as key issues.

“These were crippling challenges that undermined efficiency and stability,” Mr Rockson explained. He asserted that the government has since implemented decisive reforms to address these long-standing problems.

The Ministry Spokesperson argued that the 9% increase should be viewed in the context of the previous administration’s last major tariff hike of 27%, which he said placed a considerable strain on consumers. “If you compare the current 9% increase to the last major increment of 27%, it clearly reflects the impact of the reforms championed by the government under Energy Minister Hon. John Jinapor, alongside the rebound of the economy and positive macroeconomic indicators,” he stated.

Since January 2025, Mr Rockson noted, government interventions have focused on strengthening compliance with the Cash Waterfall Mechanism, improving ECG’s revenue collection, ensuring timely payments to IPPs, and enforcing transparent procurement processes. These efforts, he claims, have resulted in a more stable power supply and a reduction in both technical and commercial losses.

“The tariff adjustment is essential not only to safeguard the utilities but also to support critical investments and maintain long-term stability in the power sector,” Mr Rockson added. He urged the Minority to engage constructively, emphasizing the need to protect the gains made through responsible policy and continued reform.

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