The Ministry of Energy and Green Transition has appealed to Ghanaians to remain calm following widespread concerns over the 228% tariff increase proposed by the Electricity Company of Ghana (ECG), assuring the public that the final decision rests with the Public Utilities Regulatory Commission (PURC).
Deputy Energy Minister Richard Gyan-Mensah, speaking to journalists, emphasized that ECG’s submission is only part of a standard regulatory process and does not amount to an automatic adjustment.
“ECG doesn’t set tariff, it is the PURC. As part of the stakeholder engagement, ECG has to come out with its proposal, so it is in accordance with the procedure. ECG is a stakeholder just as all utility agencies.”
Deputy Energy Minister Richard Gyan-Mensah
The minister acknowledged that ECG’s proposed tariff hike aligns with broader energy sector reforms under Ghana’s programme with the International Monetary Fund (IMF).
However, he stressed that PURC would take into account the prevailing economic challenges when determining the final rate.
He reiterated the government’s commitment to affordable and reliable power supply, noting that ongoing efforts to diversify Ghana’s energy mix with renewable sources would help cushion consumers in the long term.
ECG formally submitted a request to PURC for a 228% increase in its Distribution Service Charge (DSC1) for the regulatory period 2025–2029.
The power distributor, which supplies electricity to more than 73% of Ghana’s population and serves 4.87 million customers, has long complained that suppressed tariffs undermine its ability to recover costs, invest in infrastructure, and deliver quality service.
According to company officials, ECG’s revenue shortfalls have worsened in recent years due to currency depreciation, rising operational costs, and delays in cost-reflective tariff adjustments.
The utility has already invested heavily in new substations, smart meters, and digital platforms to improve efficiency, but management insists that without higher tariffs, the company cannot sustain such efforts.
Balancing Reforms and Affordability
The proposed tariff increase has triggered heated debate, with critics warning that the hike could worsen inflationary pressures, raise the cost of doing business, and deepen economic hardship for households.
Mr. Gyan-Mensah, however, reassured the public that PURC’s mandate is to strike a balance between cost recovery for utilities and affordability for consumers.
“The Ministry of Energy and Green Transition is fully committed to reforms that make the sector financially viable, but we also recognize that tariffs must be fair and affordable.
“We are optimistic that PURC will arrive at a decision that balances these competing needs.”
Deputy Energy Minister Richard Gyan-Mensah
He further noted that the government is prioritizing investments in renewable energy projects as part of its long-term strategy to stabilize power supply and reduce reliance on expensive thermal generation.
Industry experts say PURC decision on the proposed tariff will be critical for Ghana’s energy sector, as it will determine whether utilities like ECG can achieve financial sustainability without overwhelming consumers with steep bills.
Consumer advocacy groups have already begun mobilizing to challenge the proposed hikes, with some urging PURC to reject ECG’s request outright, while others have called for a phased adjustment to lessen the burden on households and businesses.
“We ask Ghanaians to remain calm. The ECG has made its case, but it is PURC that will decide.
“We will continue to work with all stakeholders to ensure that the final tariff structure supports both the financial health of the sector and the economic wellbeing of our citizens.”
Deputy Energy Minister Richard Gyan-Mensah
As the debate intensifies, attention now turns to the PURC, which must navigate between safeguarding energy sector reforms and protecting consumers already grappling with high living costs.
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