The Public Utilities Regulatory Commission (PURC) is under mounting pressure to strike a delicate balance between utility companies’ financial sustainability and consumer affordability, following steep tariff proposals from the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).
GWCL is seeking a 280 per cent increase in water tariffs, citing soaring operational costs linked to illegal mining pollution, which has forced higher use of treatment chemicals like alum and lime. ECG, on the other hand, has requested a 225 per cent upward adjustment in electricity charges, arguing that the current tariff structure recovers just 11 per cent of distribution service costs compared to international benchmarks of 30–33 per cent.
If approved, GWCL’s tariff would rise from GH₵ 5.28 to GH₵ 20.09 per cubic metre between 2025 and 2029, while ECG’s distribution service charge would increase from GH₵ 0.190384/kWh to GH₵ 0.618028/kWh.
The proposals have triggered concerns across the country. Consumer advocates warn of significant strain on households and small businesses, particularly in economically challenged areas such as the Keta Municipality of the Volta Region.
“The PURC must weigh these proposals against the realities of inflation, currency depreciation, and the general economic hardship faced by ordinary Ghanaians,” said Maxwell Dotsey, a resident of Keta.
Other utilities have also filed substantial tariff hike requests: NEDCo (171%), Ghana Gas (91%), and GRIDCo (130%), further underscoring the challenge for regulators in ensuring utilities remain financially viable without overwhelming consumers.
The Institute of Climate and Environmental Governance has also warned that drastic increases could slow economic growth and push small-scale businesses out of operation.
Meanwhile, local entrepreneurs like Charity Asase, a sachet water vendor, say the cost of water and electricity is already biting. “These are essential for life. If the hikes are passed, many of us will struggle to survive,” she lamented.
Stakeholders are now looking to the PURC’s decision, which will determine not just tariff levels but also the broader trajectory of Ghana’s utility sector at a time of rising operational costs and worsening environmental challenges.
