PURC Warns Against Rolling Back New Electricity and Water Tariffs, Cites Sector Debt

The Public Utilities Regulatory Commission (PURC) has cautioned that walking back the latest electricity and water tariff adjustments would be near impossible, pointing to deep-seated financial challenges within Ghana's power sector as the primary justification for the increases.

Speaking in an interview, PURC Executive Secretary Dr Shafic Suleman explained that the adjustments — which saw electricity tariffs rise by 3.49% and water tariffs increase by 0.85%, effective 1st July 2026 — were necessary to keep power producers and distribution companies financially afloat. He stressed that even at current tariff levels, most utility companies are still not breaking even, forcing the government to regularly step in to cover revenue shortfalls.

Dr Suleman noted that the methodology used to arrive at the new tariffs follows the same quarterly pricing framework applied in previous periods, with one key addition. "The only difference now is we have factored some forward-looking indicators such as inflation and the cedi's performance," he said, adding that this was done to prevent the regulator from being caught off guard by exchange rate fluctuations.

Sector Debt and Cost Recovery

The PURC boss acknowledged the burden of significant debt within the power sector and said all stakeholders must find creative solutions to address it. He maintained that the tariff review is part of efforts to achieve full cost recovery while simultaneously putting pressure on distributors and producers to reduce commercial and distribution losses.

On complaints about irregular power supply, Dr Suleman said the situation has largely stabilised, attributing past disruptions mainly to transformer upgrades that have since been completed. "Most of them have been fixed, and I think the situation has normalised," he said.

The tariff announcement, made on 22nd June 2026, has drawn opposition from sections of the business community, who argue the increases add further strain to already stretched operating costs. The PURC, however, insists the adjustments are essential to safeguarding reliable utility services for all Ghanaians.