PURC Announces July Tariff Hikes Amid Expert Calls for ECG to Address Operational Inefficiencies

The Public Utilities Regulatory Commission (PURC) has announced a 3.49% increase in electricity tariffs and a 0.85% rise in water tariffs, scheduled to take effect on July 1, 2026. This decision has sparked a significant debate among energy experts and former utility officials regarding the sustainability of frequent price adjustments. While the PURC frames the hikes as necessary economic corrections, critics argue that the focus should instead shift toward fixing the systemic operational failures that continue to plague the Electricity Company of Ghana (ECG).

Samuel Dubik Mahama, the former Managing Director of the ECG, has been a prominent voice in this discussion, warning that outdated metering systems are the primary obstacle to revenue maximization. Mahama revealed that during his tenure, the company's revenue grew significantly from GH¢400 million to approximately GH¢2 billion; however, he maintained that obsolete meters and operational bottlenecks still prevent the firm from achieving financial health. He cautioned that merely raising rates places an undue burden on consumers without addressing the underlying technological gaps that cause revenue loss.

Adding weight to this perspective, Senyo Hosi, Convener of the One Ghana Movement, urged for a drastic improvement in ECG’s revenue collection efficiency, which currently stands at 85%. Hosi argued that the remaining 15% in losses represents a massive financial gap that eventually falls back on taxpayers. He criticized the PURC’s tariff adjustment formula, suggesting it consistently leads to price hikes rather than incentivizing the utility to optimize its operations. According to Hosi, fixing collection losses is the only viable path to eventually reducing electricity prices for the public.

In contrast, Appiah Kusi Adomako, Director of the West Africa Regional Centre of CUTS International, has defended the 3.49% increase as a justified economic move. Adomako cited Ghana’s heavy reliance on thermal power generation and the ongoing fluctuations in the exchange rate as the main drivers behind the tariff review. He warned against the politicization of utility pricing, asserting that the sector must remain economically viable to ensure a steady supply of power and water. He emphasized that while inefficiencies exist, the reality of production costs cannot be ignored if the energy sector is to remain sustainable.

As the July 1 implementation date approaches, the discourse highlights a fundamental tension in Ghana's energy sector: the need for cost-reflective pricing versus the urgent demand for infrastructural modernization. While the tariff hike provides immediate financial relief to the utilities, the consensus among many stakeholders is that long-term stability will only be achieved by replacing obsolete equipment and closing the gap in revenue collection. For now, consumers must prepare for higher monthly bills as the nation grapples with these complex energy challenges.