Two civil society organizations, CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSE), have strongly criticized the Public Utilities Regulatory Commission (PURC) for raising electricity tariffs by 2.45%. The groups cited a lack of transparency, weak stakeholder engagement, and economic indicators that suggest the increase is unwarranted.
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PURC’s announcement on June 25, 2025, indicated that the new tariffs will take effect on July 1 across all consumer categories. Water tariffs, however, remain unchanged for the third quarter.
In a joint statement, Appiah Kusi Adomako, West Africa Regional Director of CUTS, and Benjamin Nsiah, Executive Director of CEMSE, argued that the decision violates Section 3(c) of Act 538 of 1997, which mandates fair pricing for the benefit of government, producers, and end-users.
The CSOs pointed to the Ghanaian Cedi’s over 30% appreciation from GH¢15.70 to GH¢10.31 between Q1 and Q2 2025. This currency gain, they said, generated an estimated GH¢1 billion windfall for government and utility providers, enough to ease consumer costs or clear arrears. They also challenged the PURC’s reliance on a 20.67% inflation rate, when the actual figure now stands at 18.4%.
According to the groups, the marginal $0.08 (1%) increase in the Weighted Average Cost of Gas (WACOG) is too small to justify any tariff hike. They referenced a 2024 scenario where a 25% rise in gas costs only triggered a 3.5% tariff increase, making the current move appear economically baseless.
They also questioned PURC’s use of a GH¢488 million arrears claim to support the hike, asking how the Cedi appreciation windfall was used. Further, they criticized the Commission for introducing new cost elements, like fuel charges and reserve margins, without public consultation or clear data.
“The PURC has failed to be transparent with its methods and has sidelined critical stakeholder input,” the statement read.
CUTS and CEMSE warned that repeated hikes could embed inefficiency in the energy sector and place an undue burden on consumers. They urged the President to immediately stop the increase and called for the publication of PURC’s full methodology and assumptions.
PURC raises electricity tariffs by 2.45%, water rates unchanged
