Majority Leader Mahama Ayariga has defended the 2.45% electricity tariff increase approved by the Public Utilities Regulatory Commission (PURC), calling it a necessary step to rescue the Electricity Company of Ghana (ECG) from financial ruin.
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Speaking in Parliament on Friday, June 27, Ayariga explained that despite relative macroeconomic stability, such as low inflation, steady fuel prices, and a stable exchange rate, ECG is grappling with massive debts that threaten its ability to keep the lights on.
“Last year, the PURC held back from adjusting tariffs, which worsened ECG’s financial position. If we don’t act now, ECG won’t be able to purchase the inputs it needs to keep power flowing. We risk returning to widespread outages,” Ayariga cautioned.
He stressed that the increase is part of a broader strategy to ensure the utility provider remains operational and sustainable, adding, “The bill must be paid, either by the state or the consumer. Ignoring the debt won’t make it disappear.”
Ayariga’s remarks followed criticism from the Minority Caucus, who questioned the timing of the tariff hike in light of current economic stability.
To address lingering concerns, the Minister for Energy and Green Transition is expected to appear before Parliament next week to further explain the decision and outline the government’s long-term plan for the energy sector.
The new electricity rates will take effect from July 1, 2025, and have sparked mixed reactions among civil society groups, industry players, and consumers.
