What You Need to Know About the New Electricity Tariff Hike
Accra,Ghana – September 24,2025 - Effective October 1, 2025, electricity consumers will face a 1.14% tariff hike, as announced by the Public Utilities Regulatory Commission (PURC). In contrast, water tariffs will remain stable, providing relief to households and businesses reliant on this essential service. This decision follows PURC's Quarterly Tariff Review Mechanism, which considers factors such as the Ghana cedi-US dollar exchange rate, domestic inflation, and natural gas costs.
The Commission's decision is based on key factors including an exchange rate projection of GHS12.3715 per US$1, with GHS0.3980 under-recovery from Q3, an annual average inflation rate for Q4 projected at 12.43%, and a Weighted Average Cost of Gas (WACOG) of $7.7134/MMBtu.
The Commission's decision aims to maintain tariff real value, support service providers' financial health, and prevent disruptions in electricity and water supply. PURC emphasizes its commitment to consumer protection amid fiscal adjustments.
A major utility tariff review is scheduled for January 2026, under the 2025-2030 Multi-Year Tariff Order (MYTO) framework. This review will consider significant capital investments made by utility providers and introduce mechanisms to help recover committed costs. Stakeholder consultations are currently underway.
The modest 1.14% hike is expected to have a relatively minor impact on consumers' electricity bills. However, with potential larger increases from January 2026, consumers may face more significant tariff adjustments in the coming months.
Source – Lead News Online/Leticia Okpoti
