Ghanaians are likely to enjoy a reduction in utility tariffs in the third quarter of this year as pressure mounts on the Public Utility Regulatory Commission (PURC) to adjust prices to reflect the recent appreciation in the cedi.
This will only be possible if the PURC heeds calls to review prices downwards in the wake of the recent turnaround of the cedi and fuel cost.
Spearheading this call are two Civil Society Organizations (CSOs): CUTS International Accra and the Center for Environmental Management and Sustainable Energy (CEMSME).
The groups say the recent turnaround of the macroeconomic indicators warrants that the state ensure citizens see the benefits in their lives.
In a joint statement by the CSOs, they argued that the 18% gains made by the cedi against the US dollar, coupled with the drop in inflation to 21.2%, which is projected to drop further, are enough justifications for favourable utility tariff adjustment.
The group, although admitting that the cost of natural gas is projected to increase, is optimistic that the gains in the cedi can compensate for the increase and hence cannot be used as justification to refuse tariff reduction.
“The Ghana Cedi has appreciated by approximately 18% against the US dollar, moving from GH¢15.70 to GH¢12.93 in the second quarter, with the likelihood of further appreciation before the beginning of the third quarter. Inflation has also dropped to 21.2% from the 22.49% used to set tariffs for the first and second quarters, with the probability of further reduction by June 2025. Although natural gas prices are projected to rise to US$4.20/MMBTU in the third quarter, as per the Energy Information Administration and the government subsidies on WACOG by about USS0.83/MMBTU, the stronger Cedi is expected to offset its impact on end-user tariffs”, parts of the statement read.
Already, customers, both domestic and commercial users, are reeling under the high cost of power and water in the country as a new tariff hike took effect on May 1, 2025, exacerbating the situation.
CUTS International and CEMSME are therefore calling on the regulator to urgently initiate stakeholder engagement, which will lead to a reduction in the next review window.
Their case is not just about a reduction in the cost of water and electricity, but the economic benefits that the favourable reduction will accrue to the economy.
“These positive macroeconomic indicators provide a strong case for tariff reduction. Lower electricity tariffs would alleviate financial pressures on households, reduce production costs for industries, and help curb inflation, fostering long-term consumer welfare,” the statement further indicated.
It added that, “The Commission must act transparently and engage stakeholders to ensure Ghanaians reap the benefits of these economic gains.”
Although the cedi has significantly appreciated, amid dropping fuel prices, Ghanaians are yet to see the impact of the gains in their lives, as prices have largely remained the same. This pressure from these CSOs is aimed at forcing the hand of government to ensure that Ghanaians also benefit from the latest favourable macroeconomic gains.
