The recent 2.45% increase in electricity tariffs has sparked a wave of criticism from consumer advocacy groups and industry stakeholders, who are questioning the transparency and timing of the move amidst Ghana’s gradually stabilizing economy.
The tariff adjustment, announced by the Public Utilities Regulatory Commission (PURC) and set to take effect on July 1, 2025, affects all consumer categories, including lifeline users, residential customers, and industrial sectors. Lifeline customers consuming 0–30 kilowatt-hours will now pay 79.53 pesewas per kWh, up from 77.63 pesewas, while residential users exceeding 300 kWh will see their rates rise to 238.09 pesewas per kWh.
Consumer rights groups such as CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSE) have criticized the PURC’s decision, raising concerns over systemic inefficiencies in the power sector and a lack of adequate public consultation prior to the adjustment.
“The PURC’s approach undermines consumer trust and fails to address the root causes of inefficiency in ECG’s operations,” CUTS said in a statement.
Despite the outcry, Majority Leader Mahama Ayariga mounted a strong defense of the hike on the Floor of Parliament on Friday, arguing that the increase is essential for the financial sustainability of the Electricity Company of Ghana (ECG). He said the delay in tariff adjustments last year worsened ECG’s debt position, making the current move unavoidable.
“If we don’t allow ECG to recover its costs through tariffs, it will collapse. The debt is real and has to be paid by someone, and unfortunately, that someone is the consumer,” Mr. Ayariga said.
However, stakeholders have challenged this logic, pointing to persistent lapses in ECG’s revenue collection, technical losses, and weak enforcement mechanisms—issues that critics argue are being unfairly passed onto consumers.
To address the growing controversy, Mr. Ayariga announced that the Minister for Energy and Green Transition will brief Parliament next week to offer greater clarity on the review process and the broader state of Ghana’s energy sector.
Amid rising concerns over the cost of living and the burden on low-income households, pressure is mounting on the government to not only justify the rate hike but also to initiate long-overdue reforms to enhance accountability and efficiency within the power sector.
