The Public Utilities Regulatory Commission (PURC) has announced a 2.45% increase in electricity tariffs for all customer categories, effective July 1, 2025. This adjustment is part of their quarterly review process. The increase applies to residential, non-residential, and special load tariff (SLT) customers and is based on a comprehensive analysis of macroeconomic factors and operational costs, including inflation, exchange rate fluctuations, and rising fuel prices.
According to a statement released by the Commission, the adjustment is necessary to support utility service providers and ensure a reliable electricity supply. The decision considers a projected average inflation rate of 20.67%, an exchange rate of GHS 10.3052 to 1 US Dollar, and an increase in the weighted average cost of gas (WACoG) to USD 7.7134 per MMBtu.
The statement also emphasized, “The Commission has carefully analyzed the existing parameters, and considering the competitiveness of industries and the overall living conditions of Ghanaians, has approved a 2.45% increase in electricity tariffs across the board, while there will be no increase in water tariffs.”
The generation mix for the third quarter remains unchanged, consisting of 28.8% from hydro sources and 71.2% from thermal sources. Additionally, the Commission has taken into account GHS488 million in outstanding revenues from previous quarters, along with the costs associated with maintaining reserve capacity to ensure grid stability.
Summary of Key Adjustments:
- Lifeline customers (0–30kWh): tariff increases from GHp77.63/kWh to GHp79.53/kWh
- Residential users (0–300kWh): new tariff at GHp180.19/kWh
- Non-residential users (301+kWh): adjusted to GHp202.17/kWh
- High Voltage Mines customers: now GHp508.09/kWh, up from GHp495.93
The Commission underscored that these quarterly reviews are not arbitrary but are a necessary measure to maintain the real value of tariffs in the face of economic pressures and to uphold the financial health of utility service providers.
Consumers have been urged to note the new tariffs and plan accordingly as the adjustment takes effect next month.
Meanwhile, the PURC has confirmed that water tariffs will remain unchanged for the third quarter of 2025, maintaining a 0.00% adjustment rate.
Despite pressures similar to those influencing electricity tariffs, the PURC concluded that current water rates are sustainable for now, offering relief to consumers already grappling with broader economic challenges.
By: Albert Kuzor
