The Minority in Parliament has criticised the Public Utilities Regulatory Commission (PURC) for its decision to increase electricity tariffs by 2.45%, effective July 1, 2025. They are demanding a full justification for this increase, especially given the recent decline in macroeconomic indicators. At a press conference held in Parliament on Thursday, George Kwame Aboagye, the Ranking Member on the Energy Committee, questioned the logic behind the tariff hike. He pointed out that the main cost components of electricity generation have either remained stable or decreased in recent months.
“There is no justification for the increase,” Mr Aboagye stated. “About 70 per cent of our generation relies on fuel — gas, Heavy Fuel Oil (HFO), and Light Crude Oil (LCO). Most generators are dual cycle, so if HFO and LCO prices rise, we can switch to gas. The price of gas has not gone up.” He further noted that hydro and solar, which make up about 30 per cent of Ghana’s energy mix, remain stable and unaffected by fuel price fluctuations, thereby weakening the basis for any upward tariff adjustment.
Mr Aboagye also pointed to improved macroeconomic conditions, citing falling inflation and a more stable cedi. “The exchange rate peaked this year at GHS15.527 but is now around GHS10.30. Inflation, which was 22.4% in March, dropped to 21.2% in April and further to 18.1% in May. It is projected to decline to around 16% in June. So, why the increase?” he questioned.
He stressed that according to the 2025 national budget, utility tariff adjustments were to be reviewed quarterly, with changes expected to reflect both upward and downward trends depending on prevailing economic conditions. “You cannot just wake up and increase electricity tariffs by 2.45%. PURC must come forward and explain this decision to Ghanaians,” Mr Aboagye demanded.
The Minority has vowed to summon the PURC before Parliament to provide clarity on the rationale behind the decision and ensure that the interest of the Ghanaian consumer is prioritised.
By: Emmanuel Tetteh & James Kwesi Avedzi
