Politics

Electricity tariffs go up by 2.45% in PURC’s third quarter review

The Public Utilities Regulatory Commission (PURC) has announced a 2.45% upward adjustment in electricity tariffs, effective July 1, 2025.

The decision comes as part of the Commission’s Quarterly Tariff Review Mechanism, which aims to keep utility service providers financially viable while protecting consumers from drastic price shocks.

In a statement released on June 25, 2025, the PURC explained that the tariff hike was influenced by several economic indicators, including exchange rate movements, inflation, and fuel costs.

A key factor was the average Ghana Cedi–US Dollar exchange rate of GHS10.3052 used for the calculation, along with a projected inflation rate of 20.67% for the third quarter.

The price of natural gas—used heavily in electricity generation—also increased slightly from USD 7.6289/MMBtu in Q2 to USD 7.7134/MMBtu.

Additionally, an outstanding debt of GHS488 million from previous quarters and reserve capacity for grid stability were factored into the decision.

The review affects all electricity consumer categories.

Lifeline residential consumers (0–30 kWh) will now pay 79.53 GHp/kWh, up from 77.63 GHp/kWh.

For regular residential users consuming above 300 kWh, tariffs have moved from 232.39 GHp/kWh to 238.09 GHp/kWh.

Non-residential and special load tariff consumers will also see proportional increases.

The PURC stated that these quarterly adjustments are necessary to ensure the sustainability of utility providers while balancing the economic realities of consumers.

The Commission assured the public it will continue to monitor the operational efficiency of service providers and hold them accountable to regulatory benchmarks.

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