Beginning January 1, 2026, electricity and water tariffs will be increased following approval by the Public Utilities Regulatory Commission (PURC). Under the new directive, electricity rates will rise by 9.86%, while water tariffs will go up by 15.92%, applicable to all categories of consumers. The announcement was made on Tuesday, December 2, 2025, after the conclusion of the Multi-Year Tariff Review Order (MYTO) processes covering the period 2026–2030. In a statement issued that evening and signed by PURC’s newly appointed Executive Secretary, Dr. Shafic Suleman, the Commission explained that the review was conducted in accordance with sections 3, 16, 17, 18, 20, and 21 of the PURC Act, 1997 (Act 538).
“The Public Utilities Regulatory Commission wishes to inform consumers of electricity and water that, after going through the major Multi-year Tariff Review Order (MYTO) processes for the period 2026 to 2030, there has been a review of the existing tariffs effective January 01, 2026. These reviews have been carried out in line with sections 3, 16, 17, 18, 20 and 21 of the PURC Act, 1997, Act 538. This major review is consistent with the Commission’s MYTO regime, which ranges between 3-5 years,” he said.
Dr Suleman noted that the last major review, which considered both capital expenditure (CAPEX) and operational expenditure (OPEX), was undertaken in September 2022 and was due for review in 2025. He explained that this review was separate from the quarterly reviews, which consider only operational expenses beyond the control of the service providers.
He emphasized that in conducting this comprehensive review, the Commission took into account the investment needs of the utility providers, the competitiveness of local industries, and the overall living conditions of consumers. “After assessing all relevant factors, the Commission hereby announces a 9.86% increase in electricity tariffs, applicable to all categories of customers.
Similarly, water tariffs across all customer classes will be adjusted upward by 15.92% over the tariff control period spanning 2026 to 2030,” he stated. He further noted that these adjustments were approved following extensive investment hearings on utility tariff proposals, as well as broad stakeholder engagements and regional public consultations organized by the Commission.
Factors considered
The Executive Secretary stated that the factors considered in the MYTO decision process included the regulated asset base of the utilities, which was evaluated for the period 2026 to 2030 to allow utilities to meet their asset investment requirements. He added that the revised rates will remain in force over the five-year period.
He explained that the approved tariffs will be subject to quarterly reviews, which will account for factors beyond the control of utility service providers. These include the cedi-to-dollar exchange rate, prevailing inflation levels, the generation mix between hydro and thermal sources, and the cost of fuel—primarily natural gas—calculated using the Weighted Average Cost of Gas (WACoG).
According to him, these periodic adjustments are intended to preserve the real value of the tariffs, ensuring the continued financial viability of the utilities while safeguarding consumer interests. He further noted that additional policy measures, such as the integration of mini-grids, were incorporated into the MYTO framework to advance the goal of universal electricity access nationwide.
Reforms
On mini-grid tariffs, Dr Suleman explained that the Commission had taken into account the cost of providing electricity to island communities through the use of mini-grids. “To this end, the cost of providing electricity to such communities at the same uniform rate as other consumers served through traditional forms of electricity has been added to the revenue requirement of the Volta River Authority (VRA) for a seamless implementation,” he added.
Source: Maclean Kwofi
