Two prominent civil society organisations, CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSE), have raised serious concerns about the latest electricity tariff adjustment announced by the Public Utilities Regulatory Commission (PURC).
In a joint statement, the organisations described the 2.43% tariff increase, scheduled to take effect on July 1, 2025, as lacking transparency, fairness, and economic justification. They are calling for an immediate suspension of its implementation.
The groups argue that the PURC’s decision contradicts current macroeconomic trends that should have resulted in a tariff reduction. They pointed to the significant appreciation of the Ghanaian cedi, which gained over 30% against the US dollar between the first and second quarters of 2025 — from GH¢15.70 to GH¢10.31 per dollar — as well as a notable decline in national inflation to 18.4%.
Despite these positive indicators, the PURC reportedly used an inflation rate of 20.67% in its calculations, which the CSOs say is inconsistent with actual data and the prevailing economic environment.
“This tariff hike disregards the recent improvements in the economy and violates the principles of fair pricing as outlined in Section 3(c) of PURC Act 538 of 1997,” said Mr. Appiah Kusi Adomako, West Africa Regional Director of CUTS International, and Mr. Benjamin Nsiah, Executive Director of CEMSE.
The statement also questioned several key cost components used in the tariff calculation:
The Weighted Average Cost of Gas increased by only 1%, which the groups described as marginal and insufficient to justify a tariff hike.
The GH¢488 million arrears cited by the PURC remain unexplained, particularly in light of an estimated GH¢1 billion windfall generated from the previous quarter’s favorable exchange rate.
There was no public disclosure or stakeholder engagement regarding new pricing variables, including fuel costs and reserve margins.
“We’ve seen no simulations, procurement data, or unit cost breakdowns to support these adjustments,” the statement said, criticizing the PURC for a lack of transparency.
The CSOs warned that repeated tariff increases, without addressing deep-rooted structural inefficiencies in the energy sector, risk undermining the long-term sustainability of Ghana’s power system.
They urged the PURC to focus on reducing commercial and technical losses — which continue to burden the sector — rather than shifting the cost onto consumers.
The groups are demanding:
Immediate suspension of the July tariff adjustment
Full disclosure of the methodology, assumptions, and cost elements used in the third-quarter pricing decision
Greater stakeholder engagement and transparency in future tariff reviews
“Without these measures, trust in the tariff-setting process will continue to erode, and consumers will bear an unfair share of the burden,” the statement concluded.