The utilities regulator is being urged to get the service providers to fix their inefficiencies before agreeing to upward tariff adjustments.
Ghana’s major utility providers are seeking some of the steepest tariff hikes in the nation’s history, a move that has sparked concern among industry stakeholders and consumers. The Electricity Company of Ghana (ECG) has requested a whopping 224 percent increase, Ghana Grid Company (GRIDCo) seeks as much as 130 percent, and the Volta River Authority (VRA) has proposed a 59 percent rise.
These proposals, currently before the Public Utilities Regulatory Commission (PURC), come as part of the quarterly tariff review process, which factors in exchange rates, inflation, and fuel costs.
The utilities have defended their requests, citing the need to recover operational costs and restore financial sustainability.
GRIDCo emphasized maintaining transmission infrastructure, ECG pointed to rising inflationary pressures, and VRA highlighted the necessity of covering generation costs.
But the The International Perspective for Policy & Governance (IPPG) has pushed back, arguing that tariff adjustments should not simply shift the financial burden onto consumers.
In its July 2025 report, the group identified deep-rooted systemic inefficiencies that undermine service delivery.
According to IPPG, without tackling these issues through comprehensive reform, piecemeal adjustments will do little to resolve Ghana’s power sector challenges.
Under its proposed framework, IPPG recommends that tariff increases be tied to measurable performance benchmarks.
Utilities would be required to reduce technical and commercial losses, enhance operational efficiency, and improve customer service before being granted approval for higher charges.
Consumers, meanwhile, are already grappling with recent tariff hikes. PURC approved a 14.75 percent increase for the second quarter of 2025, followed by a further 2.45 percent rise in the third quarter.
On top of that, households and businesses are contending with a GH¢1 per litre fuel levy, further straining budgets.
IPPG has therefore called on PURC to conduct broad consultations with stakeholders and undertake detailed economic and social impact assessments before approving any significant tariff adjustments.
The group further advised that increases, if necessary, should be phased in gradually to give households and businesses time to adjust.
They also recommended protective measures for vulnerable households and greater transparency in communicating changes to the public.
“Reliable electricity supply is vital for Ghana’s development, but it must be delivered in a way that is fair to consumers,” said IPPG’s Executive Secretary, Mr. Owusu-Mante.
“Ghanaians deserve an electricity sector that is reliable, efficient, and affordable. Simply passing costs to consumers is not a solution. IPPG believes that tariff changes should link to measurable performance improvements.”
