The Public Utilities Regulatory Commission (PURC) has announced new utility tariffs that will take effect from 1 January 2026, following the completion of its Multi-Year Tariff Review Order (MYTO) covering the period 2026 to 2030.
The decision marks a significant update to Ghana’s tariff framework, taking into account investment needs, operational realities, and economic conditions facing both consumers and industries.
In a statement signed by Executive Secretary Dr. Shafic Suleman, the Commission said the comprehensive review was conducted “in line with sections 3, 16, 17, 18, 20 and 21 of the PURC Act, 1997, Act 538.”
This major tariff review cycle is consistent with its MYTO regime, which mandates a reassessment every three to five years. The last such review was held in September 2022 and was due for renewal in 2025.
Electricity and Water Tariffs to Rise
The adjustment reflects what the Commission describes as a balanced decision intended to support sustainable utility operations while considering the competitiveness of Ghanaian industries and the general living conditions of households.
After assessing the proposals submitted by utility companies, stakeholder feedback, and the economic context, the PURC approved a “9.86% increase in electricity tariffs across all customer categories.”
The electricity tariff increase is aimed at ensuring that utility companies, particularly those responsible for power generation, transmission, and distribution have adequate resources to maintain and expand infrastructure.
The Commission highlighted that the reviewed tariff structure will remain in force throughout the five-year control period, though quarterly reviews will continue to adjust for macroeconomic variables.
Water consumers will also face higher charges, with tariffs for all customer classes set to rise over the same five-year period.
“Water Tariffs for all customer classes on the other hand will experience an upward review of 15.92% over the tariff control period (2026-2030).”
Public Utilities Regulatory Commission
The Commission attributes this adjustment to increasing operational and capital expenditure requirements in the water sector, as well as the need to improve reliability, quality, and system expansion in line with population and industrial growth.
Regulated Asset Base and Quarterly Adjustments to Protect Utility Viability
A central factor in the review was the evaluation of the regulated asset base of the utilities for the 2026–2030 period.
This assessment, according to the PURC, ensures that utilities “meet their asset investment requirements” and remain financially capable of delivering essential services.
The new tariff rates are fixed for five years, but the Commission emphasised that quarterly reviews will remain in place to account for factors beyond the control of service providers.
These quarterly reviews will consider the Ghana Cedi–US dollar exchange rate, Ghana’s inflation rate, the power generation mix between hydro and thermal sources, and the cost of fuel particularly natural gas using the Weighted Average Cost of Gas (WACOG).
“These quarterly reviews will be undertaken to maintain the real value of the tariffs, thereby keeping the utility service providers financially viable… while protecting the interest of consumers.”
Public Utilities Regulatory Commission
One of the notable reforms in this MYTO cycle is the inclusion of mini-grid costs into the tariff structure. This is designed to advance Ghana’s goal of universal electricity access, particularly for island and remote communities.
The PURC explained that electricity generated through mini-grids often carries higher production costs, and the Commission has now taken steps to ensure these communities pay the same uniform tariff as consumers served through the main grid.
“To this end the cost of providing electricity to such communities at the same uniform rate… has been added to the revenue requirement of the Volta River Authority (VRA) for a seamless implementation.”
Public Utilities Regulatory Commission
This marks a significant policy shift toward equitable access, addressing long-standing disparities in energy pricing for hard-to-reach communities.
Extensive Stakeholder Engagement Underpinned the Review
The PURC’s tariff announcement follows a series of investment hearings, stakeholder consultations, and regional public forums.
These processes, the Commission said, were essential in ensuring a transparent and inclusive review that reflects the expectations of both utilities and consumers.
“These tariff adjustments are against the backdrop of the just ended investment hearings… stakeholder consultations and regional public hearings which were undertaken by the Commission.”
Public Utilities Regulatory Commission
The Commission expressed appreciation to stakeholders and reassured the public of its commitment to regulatory integrity.
“The PURC pledges to continue to hold the Service Providers to strict adherence to the Commission’s regulatory standards and benchmarks… to ensure that value for money and service quality delivery is achieved.”
Public Utilities Regulatory Commission
With the new tariff structure set to take effect in January 2026, utilities and consumers alike are preparing for the next phase of Ghana’s utility pricing regime, a period the Commission believes will strengthen operational efficiency, drive investment, and support long-term sector sustainability.
READ ALSO: Otumfuo Concludes Bawku Peace Talks, Set to Submit Final Report to Mahama
