Parliament on Friday, June 27, became the centre of heated debate as Majority Leader Mahama Ayariga mounted a firm defence of the Public Utilities Regulatory Commission’s (PURC) decision to increase electricity tariffs by 2.45 per cent.
The new tariffs, set to take effect on July 1, 2025, have triggered national concern, but Mr. Ayariga insisted the adjustment is essential to prevent the collapse of the Electricity Company of Ghana (ECG).
Addressing MPs, Mr. Ayariga responded to public pushback by stressing that the increment was a necessary financial intervention. “You all know that the whole of last year and before that, there was an effort to prevent the PURC from adjusting the tariffs. So that whole period, there was no adjustment, and you know very well that bills were accruing; payments have to be made,” he explained.
He pointed to ECG’s deepening financial woes, noting that prolonged stagnation of tariffs had left the state power distributor with unsustainable debts.
“ECG is accumulating huge [debt] and it has to be paid, so who is supposed to pay? Is it not the consumer?” he asked, underscoring the role of consumers in bearing the cost of electricity provision.
He issued a caution on the dangers of inaction. “And if you are not adjusting the tariffs to enable ECG to pay, ECG is going to collapse. They are no longer able to buy the input needed to keep the generators on, and we are going to have a power outage; the bills have to be paid.”
Rejecting the argument that macroeconomic improvements should rule out tariff hikes, Mr. Ayariga maintained that financial realities remained unchanged. “The bill has to be paid. So if PURC is doing its work, I do not think there is a basis for saying that because we have improved the economy, it doesn’t mean that the debt at ECG will just be whisked away. The bill has to be paid partly by consumers,” he stressed.
The PURC’s quarterly tariff review, which considers factors such as inflation (projected at 20.67%), an exchange rate of GH₵10.3052 to the dollar, and higher natural gas costs, has sparked criticism, especially from consumer advocacy groups and the Minority in Parliament who cite recent signs of economic recovery.
ECG continues to grapple with major financial and operational setbacks, including high distribution losses and overdue payments to power producers. Reports have detailed billions of Ghana cedis in debt and under-declared revenues, intensifying pressure on government finances and the country’s energy security.
PURC has disclosed that GH₵488 million in outstanding revenue from previous quarters still needs to be recovered, and the current tariff adjustment is a step in that direction.
Energy and Green Transition Minister is scheduled to appear before Parliament in the coming week to further explain the basis and consequences of the tariff revision.
Meanwhile, Mr. Ayariga’s stance reinforces the government’s narrative that the unpopular increase is a practical step to ensure ECG’s sustainability and safeguard uninterrupted electricity supply nationwide.
