Two prominent civil society organisations, CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSME), have urged the Public Utilities Regulatory Commission (PURC) to reduce electricity tariffs for the third quarter of 2025, citing significant improvements in Ghana’s economic conditions.
In a joint statement released today, the two groups argued that the current economic climate presents a strong case for lower electricity rates, which would provide much-needed relief to consumers and businesses alike.
Appiah Kusi Adomako, West Africa Regional Director for CUTS International, and Benjamin Nsiah, Executive Director of CEMSME, highlighted key economic indicators to support their call for lower tariffs. These include an 18% appreciation of the Ghana Cedi against the US dollar—from GHS15.70 to GHS12.93—and a decline in inflation to 21.2%, down from the 22.49% rate used for earlier tariff adjustments.
They also noted that while global natural gas prices are projected to rise slightly to USD 4.20 per MMBTU in Q3 2025, the stronger cedi and government subsidies should help cushion the impact, making a case for reduced electricity costs.
“These positive macroeconomic indicators provide a compelling argument for lower electricity tariffs,” said Adomako. “Reduced rates would not only ease the financial burden on households but also reduce production costs for businesses, potentially leading to job creation and a more competitive economy.”
The organisations also called for greater transparency and accountability from the Electricity Company of Ghana (ECG), citing inefficiencies and technical losses that have long plagued the utility provider.
“PURC must address ECG’s management lapses and ensure that future tariff adjustments are tied to clear institutional reforms that improve service delivery,” Nsiah emphasised.
The call for tariff reductions comes just a month after the PURC implemented a 6.52% tariff hike on May 1, 2025, based on a projected exchange rate of GHS15.6974/USD and an inflation rate of 22.49%. The increase also accounted for 50% of GHS488.42 million in unpaid revenue arrears from 2024, resulting in a cumulative 14.75% rise in tariffs over the first half of the year.
Given the recent economic gains, both CUTS and CEMSME argue that it is now time for the PURC to adjust its approach and pass the benefits on to consumers.
The PURC, established under the Public Utilities Regulatory Commission Act, 1997 (Act 538), is legally required to protect the interests of consumers. CUTS and CEMSME have called on the regulator to fulfil this mandate by initiating broad stakeholder consultations ahead of the next tariff review.
“Lower electricity costs could stimulate industrial productivity, enhance job creation, and improve Ghana’s regional competitiveness,” the statement concluded.
