The Public Utilities Regulatory Commission (PURC)’s recent announcement of a 14.75% increase in electricity tariffs and a 4.02% rise in water tariffs, effective from April 2025, has triggered widespread public concern and debate about the government’s broader economic management and the effectiveness of utility regulation in Ghana.
Speaking out strongly against the tariff adjustments in an interview with the Vaultz news, Mr. Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy, described the PURC’s decision as “bad news” for consumers and a reflection of institutional irresponsibility.
“Over the years, what I’ve observed is that the PURC and its affiliate institutions set tariffs that effectively transfer their irresponsibility and inefficiency to the consumer.”
Mr. Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy
According to PURC’s April 11 press release, the adjustments fall within the Commission’s Quarterly Tariff Review Mechanism, which is based on four key variables: the cedi/dollar exchange rate, inflation rate, cost of fuel (primarily natural gas), and the electricity generation mix.
The Commission insisted that the adjustments are aimed at ensuring the continued provision of reliable utility services while enabling utility providers to recover costs and remain financially viable.
However, many Ghanaians believe that the latest hikes merely shift the burden of economic inefficiencies and poor policy implementation onto already struggling consumers.
Mr. Nsiah argued that key economic indicators used in tariff computations—such as inflation and currency depreciation—are the responsibilities of the state to manage, not the burden of ordinary citizens to bear.
He pointed out that the Bank of Ghana’s inflation target stands at 8%, yet current inflation exceeds 22%.
“If the Bank of Ghana fails, despite all its monetary policy tools, to keep inflation in check, the result is passed down to consumers through higher tariffs. That is not fair.”
Mr. Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy
He extended the criticism to the Ministry of Finance, stating that ineffective fiscal policies exacerbate inflation and currency instability, both of which drive up the cost of utilities.
Mr. Nsiah also highlighted the depreciation of the Ghanaian cedi as another unjust burden for consumers, especially when utility providers purchase fuel and other inputs in U.S. dollars.
“The cedi’s instability reflects weak economic stewardship. If the state cannot stabilize the exchange rate, why should the end user pay the price?”
Mr. Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy
Particularly troubling to Nsiah is Ghana’s cost of natural gas, which he describes as unreasonably high given the country’s own reserves and flaring volumes.
He noted that while the Weighted Average Cost of Gas (WACOG) in Nigeria stands at $3.50/MMBtu, Ghana’s WACOG is $7.86/MMBtu and is projected to rise to $8.45/MMBtu.
“Why should we have natural gas in Ghana and pay more for it than countries importing it?
“This is due to our failure to invest in infrastructure like a second phase gas processing plant.”
Mr. Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy
PURC’s Justification Fails to Convince Critics
In its press release, PURC acknowledged the financial distress faced by utility providers, citing under-recovery of revenues as a key challenge.
The Commission noted that without periodic tariff adjustments, providers like the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) would struggle to maintain service delivery and infrastructure investments.
However, Mr. Nsiah rejected this explanation as inconsistent with PURC’s own past statements.
“Last year, PURC said even with an upward tariff adjustment, ECG wouldn’t be able to collect all its expected revenue. So if they know that, why implement another 14.75% increase? It suggests they are ignoring the plight of Ghanaians.”
Mr. Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy
He accused the Commission of acting without proper stakeholder engagement and failing to consider the economic fragility of the average Ghanaian household, many of which are already grappling with rising food prices, rent, transportation costs, and job insecurity.
The tariff hikes have reignited broader questions about Ghana’s energy policy coherence, especially in the context of abundant natural resources.
Mr. Nsiah called for more sustainable investment in energy infrastructure, including domestic gas processing, and a serious commitment to economic reforms that reduce inflation and currency depreciation.
“It is sad that we are here. But I think politicians must take Ghanaians seriously and act responsibly.
“The focus should be on structural reforms that reduce our dependence on external pricing dynamics.”
Mr. Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy
As public dissatisfaction mounts, many are urging government institutions—especially the Ministry of Energy, Ministry of Finance, and the Bank of Ghana—to work collaboratively toward reducing inflation, stabilizing the currency, and ensuring that Ghana’s energy pricing reflects domestic capabilities and not merely global market volatility.
The growing backlash suggests that Ghanaians are not just protesting price increases—they are demanding accountability, transparency, and structural reforms.
With continued pressure from civil society, experts, and consumers, the coming months could see increased demands for tariff reviews, infrastructure investment, and a national conversation on energy justice.
In the meantime, the April tariff hikes will go into effect, leaving consumers to absorb the impact—yet again.
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