Majority Leader Mahama Ayariga has justified the recent 2.45% increase in electricity tariffs, arguing that the adjustment is critical to preventing the collapse of the Electricity Company of Ghana (ECG) amid its mounting debt.
Speaking on the floor of Parliament on Friday, June 27, Ayariga positioned the tariff review not as a reaction to current inflation or fuel prices, but as a financial lifeline for the struggling power utility.
“If we do not adjust the tariff to enable ECG to pay its debts, the company will collapse. They won’t be able to buy the input needed to keep the generators running, and we risk plunging the country into power outages,” he warned.
His defence of the Public Utilities Regulatory Commission (PURC) decision comes after the Minority Caucus raised questions over the timing and necessity of the increment, particularly in a period of relative macroeconomic stability.
Ayariga, however, explained that the last tariff review was delayed due to political and economic considerations, leading to revenue shortfalls for ECG.
“There was an effort last year to stop tariff adjustments altogether. That led to zero increases for the entire period, but the debts didn’t disappear — they grew,” he stated.
He stressed that improved economic indicators do not automatically erase legacy debts or reduce operational costs for ECG, urging critics to see the tariff as a shared responsibility between government and consumers.
“The bill has to be paid, and partly by consumers. PURC is doing its job. The question is not whether we want to pay more, but whether we want to keep the lights on,” Ayariga said.
To provide more insight into the decision, Ayariga announced that the Minister for Energy and Green Transition is scheduled to appear before Parliament next week to speak on the tariff hike and energy sector sustainability.
The 2.45% increase, which takes effect July 1, 2025, has already stirred debate among civil society organisations, industrial players, and consumer advocacy groups, many of whom have expressed concern over the impact on household and business budgets.
Despite the criticism, government insiders suggest the move is part of a broader financial recovery plan for ECG, aimed at restoring stability to Ghana’s power supply chain while preparing the sector for long-term sustainability.
