Two leading Civil Society Organisations, CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSME), are calling on the Public Utilities Regulatory Commission (PURC) to initiate broad stakeholder consultations aimed at reducing electricity tariffs by the third quarter of 2025.
In a joint statement released last week, the organisations argued that significant improvements in Ghana’s macroeconomic conditions and declining electricity input costs present a strong case for lower tariffs.
They contend that Ghanaians deserve relief from rising utility bills, especially as the economy shows signs of recovery.
Appiah Kusi Adomako, West Africa Regional Director for CUTS International, and Benjamin Nsiah, Executive Director of CEMSME, pointed to key economic indicators to support their call.
These include an 18% appreciation of the Ghana Cedi against the US dollar—from GHc15.70 to GHc12.93—as well as a drop in inflation to 21.2%, down from the 22.49% rate used to set tariffs in earlier quarters.
While global natural gas prices are expected to rise slightly to US$4.20/MMBTU in the 3rd quarter of 2025, government subsidies and the stronger local currency are projected to cushion the impact.
The two CSOs also noted that an expected increase in the share of hydropower generation above 30% could further reduce overall electricity costs.
“These positive macroeconomic indicators provide a strong case for tariff reduction,” said Adomako.
“Lower electricity tariffs would ease the financial burden on households, cut production costs for industries, and help tame inflation—all of which will support long-term consumer welfare and economic growth.”
The organisations reminded the PURC of its legal mandate under Section 16(3)(a) of the Public Utilities Regulatory Commission Act, 1997 (Act 538), which requires it to protect consumer interests.
They urged the Commission to act transparently and engage all stakeholders in a thorough review process.
The PURC reviews electricity and water tariffs quarterly, considering variables such as exchange rates, inflation, and operational costs incurred by utility providers like the Electricity Company of Ghana (ECG). These factors directly influence the tariffs passed on to consumers.
CUTS and CEMSME also called for increased transparency and accountability, criticising ECG for inefficiencies such as commercial and technical losses that unfairly shift costs onto consumers.
“PURC must address ECG’s management lapses and ensure that future tariff adjustments are tied to clear institutional reforms that improve service delivery,” Nsiah emphasised.
Beyond consumer relief, the CSOs highlighted the potential economic benefits of reduced tariffs.
Lower electricity costs, they said, could stimulate industrial productivity, enhance job creation, and improve Ghana’s regional competitiveness.
This appeal comes a month after PURC announced a 6.52% tariff increase on May 1, 2025—based on a projected exchange rate of GHS15.6974 for US$1, an inflation rate of 22.49%, and a Weighted Average Cost of Gas of US$7.6289/MMBTU.
That decision also accounted for 50% of GHc488.42 million in unpaid revenue arrears from 2024, resulting in a cumulative 14.75% increase across the first half of the year.
With current economic trends showing significant improvement, CUTS International Accra and CEMSME say it is time for PURC to reverse course and pass the gains on to Ghanaian consumers through a downward tariff adjustment.
