Consumer advocacy organization CUTS International is preparing to take legal action against Ghana’s Public Utilities Regulatory Commission (PURC), accusing the regulator of failing in its mandate by greenlighting new electricity tariffs without addressing longstanding inefficiencies within the Electricity Company of Ghana (ECG).
This follows PURC’s announcement of a 2.45% increase in electricity tariffs, effective July 1, 2025, a move that has sparked fresh backlash from civil society and industry players already grappling with high production costs. Water tariffs remain unchanged.
Appiah Kusi Adomako, West Africa Regional Director of CUTS International, told Citi FM’s Eyewitness News that the Commission’s approval process continues to ignore critical structural problems within ECG — particularly technical and commercial losses — which he argues have cost consumers billions in unnecessary charges.
“It is time we stop burdening the consumer for the inefficiencies of ECG,” Adomako said. “Every time, PURC turns to the public for easy revenue instead of compelling ECG to fix its leakage-prone systems.”
He disclosed that CUTS intends to file for a court injunction to halt further tariff approvals until PURC enforces accountability and efficiency targets at ECG.
“We are exploring a legal route to ensure the PURC does not approve any new tariffs unless ECG demonstrates real progress in reducing its losses,” Adomako added.
ECG has consistently faced criticism over its inability to reduce its losses — which stem from faulty infrastructure, illegal connections, and inefficient billing systems. Analysts estimate the company loses over 25% of distributed power annually, costs that are often absorbed by end users through higher tariffs.
Critics argue that the regulator’s actions contradict the principle of fairness, especially as businesses and households contend with inflationary pressures and rising utility costs.
As the government continues to promote industrial expansion and a 24-hour economy, CUTS International’s legal threat highlights growing discontent among consumers who feel unfairly penalized for mismanagement in the power sector.
The PURC has yet to respond formally to the potential lawsuit.
