Collins Adomako Mensah demands explanation for fresh electricity tariff hike

Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako Mensah, has raised concerns over the latest utility tariff adjustments announced by the Public Utilities Regulatory Commission (PURC).

The PURC has approved a 3.49 per cent increase in electricity tariffs and a 0.85 per cent increase in water tariffs, effective July 1, as part of its quarterly review mechanism.

The Commission says the adjustments are influenced by inflation, exchange rate movements, changes in the electricity generation mix and the cost of natural gas used for power generation.

Speaking during a media briefing in Parliament on Thursday, June 25, Mr. Adomako Mensah questioned the rationale behind the increases despite what he described as improving macroeconomic indicators.

He argued that tariff adjustments should be tied to verifiable improvements in service quality, including persistent challenges in prepaid meter depletion, power outages and billing irregularities at the Electricity Company of Ghana.

Mr. Adomako Mensah also called for a review of the 2026–2030 Multi-Year Tariff Order, which he said imposed a 9.86 per cent electricity increase at the start of 2026.

He stressed that recent macroeconomic gains, including cedi appreciation and declining inflation, should translate into lower utility costs for consumers.

According to him, the electricity sector, which relies heavily on imported crude oil and natural gas priced in foreign currency, should benefit from the strengthening cedi.

"Yet PURC is increasing electricity tariffs once again. This contradiction demands answers," he stated.

He further questioned why utility tariffs continue to rise despite what he described as falling inflation and easing interest rates.

The PURC, however, maintains that its quarterly tariff review mechanism is designed to preserve the real value of tariffs, ensure financial sustainability of utility providers and support continuous service delivery.

It added that the latest review used a weighted average exchange rate of GH¢11.2228 to the US dollar, representing a 0.2 per cent depreciation of the cedi.

The Commission also cited a three-month average inflation rate of 3.43 per cent and changes in natural gas prices as key factors behind the adjustments.