Two major civil society organisations—CUTS International Accra and the Center for Environmental Management and Sustainable Energy (CEMSE)—have sharply criticised the Public Utilities Regulatory Commission (PURC) for its decision to raise electricity tariffs by 2.43%, effective July 1, 2025.
In a joint statement, West Africa Regional Director of CUTS International, Appiah Kusi Adomako, and Executive Director of CEMSE, Benjamin Nsiah, described the tariff adjustment as unjustifiable, non-transparent, and in violation of Section 3(c) of Act 538 of 1997, which mandates fair and equitable pricing for all electricity stakeholders.
The organisations highlighted several reasons why the tariff hike lacks merit:
Cedi Appreciation Ignored
According to the CSOs, the Ghanaian cedi appreciated significantly—over 30% between the first and second quarters of 2025, moving from GHC15.70 to GHC10.31 against the US dollar. They argue that this currency gain should have reduced electricity costs, not increased them.
This appreciation, they contend, resulted in a GHC1 billion windfall for the government and power distribution companies—enough to clear arrears or invest in emergency fuel—making the tariff hike unnecessary.
Inflation Rate Discrepancy
The PURC used an outdated inflation rate of 20.67% in its calculations, despite the actual rate standing at 18.4%. The CSOs noted that earlier tariffs in Q1 and Q2 2025 were also based on higher inflation rates, calling this a consistent overestimation that hurts consumers.
Minimal Change in Gas Prices
The Weighted Average Cost of Gas (WACOG) only increased by 1% ($0.08). By comparison, a 25% WACOG increase in Q2 2024 triggered just a 3.5% hike. The CSOs argue that this minor gas cost adjustment doesn’t justify the new tariff, especially with a stronger cedi in play.
Lack of Transparency on Arrears
While the PURC cited GHC488 million in arrears to justify the increase, the CSOs questioned why the GHC1 billion exchange rate gain wasn’t factored in. This, they claim, erodes public trust in the PURC’s tariff-setting processes.
Stakeholder Exclusion and Opaque Justifications
The CSOs condemned the PURC’s failure to engage stakeholders before introducing new tariff determinants, including a mysterious 27% fuel cost component and unclear reserve margin allocations. They are demanding full disclosure of fuel price assumptions, procurement strategies, and detailed simulation models.
CUTS International Accra and CEMSE have urged the PURC to:
Suspend the 2.43% tariff increase
Disclose all tariff calculation methods and data
Engage stakeholders in future tariff reviews
Tackle inefficiencies and losses in the energy sector instead of passing costs to consumers
They warned that repeated hikes—without fairness and transparency—could severely undermine public confidence and lead to long-term inefficiencies in Ghana’s energy sector.
This latest tariff hike has sparked a wave of public concern, with growing calls for regulatory reforms and consumer protection. Ghanaians are watching closely to see if the PURC will respond to the demand for a more transparent and participatory pricing framework.