Two influential civil society organisations are demanding a halt to the Public Utilities Regulatory Commission’s (PURC) upcoming electricity tariff hike, accusing the regulator of ignoring favourable economic trends and failing to provide a transparent justification for the decision.
CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSE) jointly issued a sharp critique of PURC’s planned 2.43 per cent electricity tariff increase, which is set to take effect on July 1, 2025. The groups say the decision lacks credibility and is not backed by available economic data.
“The PURC cannot continue to burden Ghanaians while ignoring macroeconomic realities,” the CSOs said in a joint statement signed by Appiah Kusi Adomako, West Africa Regional Director of CUTS, and Benjamin Nsiah, Executive Director of CEMSE.
They argue that the decision to increase tariffs contradicts recent improvements in the economy, including a dramatic appreciation of the Ghanaian cedi and falling inflation levels—factors that should have led to a reduction in electricity costs for consumers.
According to their analysis, the cedi gained over 30 per cent in value against the US dollar between the first and second quarters of 2025, moving from GHS 15.70 to GHS 10.31. This appreciation, they say, led to surplus revenue collection from electricity consumers that could have helped offset operational costs and reduce arrears—without resorting to higher tariffs.
The CSOs further slammed PURC for allegedly using outdated and inconsistent inflation figures. “At a time when national inflation has declined to 18.4 per cent, the Commission is using 20.67 per cent for tariff calculation. This raises serious questions about their methodology,” the statement said.
They also pointed to what they described as an opaque and unaccounted-for arrears component of GHS 488 million mentioned by the PURC. They argue this fails to explain how it aligns with an estimated GHS 1 billion windfall already secured due to the cedi’s gains.
More broadly, CUTS and CEMSE accused the PURC of introducing new cost drivers—including fuel cost adjustments and reserve margin allocations—without disclosing details of procurement contracts, unit cost simulations, or technical justifications.
“Consumers deserve to know how these numbers are derived. We demand clarity on how fuel costs and reserve margins were factored into this latest review,” the statement emphasized.
The CSOs warned that increasing tariffs without addressing the root causes of inefficiency in the electricity sector—such as commercial and technical losses—will only worsen the situation and erode public trust in regulatory institutions.
They are therefore demanding:
- An immediate suspension of the 2.43% tariff hike;
- Full disclosure of the methodology and assumptions behind the new pricing model;
- Broader stakeholder consultations before future adjustments are made.
The groups underscored the need for PURC to uphold Section 3(c) of its enabling Act, which calls for electricity pricing that is fair to both consumers and providers.
“Tariff reviews must be based on data, not discretion. Anything less undermines the credibility of the Commission and further hurts already overburdened citizens,” they concluded.
As the July 1 implementation date approaches, the CSOs say they will continue to mobilize public opinion and legal options to challenge what they describe as “an avoidable and unfair increase.”
