The Institute for Energy Policies and Research (INSTEPR) has urged the Public Utilities Regulatory Commission (PURC) to suspend its proposed third-quarter utility tariff adjustments. INSTEPR states the 3.49% increase for electricity and 0.85% for water tariffs are not supported by the Commission's data.
This call follows the PURC's announcement of the increases for the third quarter of 2026. INSTEPR's review found inconsistencies in the PURC's methods for calculating past tariff adjustments. Many Ghanaians are currently struggling with a high cost of living, making these proposed increases a concern.
This situation adds to broader discussions about economic pressures on Ghanaian households and businesses. Utility tariff adjustments directly impact operational costs and household budgets. Previous tariff decisions have often drawn public scrutiny and debate. Transparent and consistent tariff adjustments are vital for economic stability.
Kwadwo N. Poku, INSTEPR's Executive Director, signed a statement on June 24, 2026, outlining the think tank's position. He emphasized the need for a standard and transparent methodology for future quarterly tariff reviews. This would ensure consistency and predictability in future adjustments, according to Mr. Poku.
The suspension of these tariffs could offer relief to consumers and businesses facing financial strain. Decision-makers and markets will watch to see if the PURC re-evaluates its proposed increases. A review of the methodology could improve public confidence in utility pricing.
INSTEPR questioned the basis for the latest tariff increases. The think tank pointed to the PURC's own data from June 22, 2026. This data indicated the cedi had depreciated by only 0.2% during the review period. Inflation also declined by 17.74%, significantly reducing price pressures. The Weighted Average Cost of Gas (WACOG) saw a downward adjustment of 1.58%. INSTEPR noted the PURC did not report any under-recoveries from the previous quarter. Under-recovery is when utility companies do not collect enough revenue to cover their costs. These factors suggest the proposed increases are difficult to justify based on the available data.
The Quarterly Tariff Adjustment mechanism accounts for changes in four key variables. These include the cedi-to-dollar exchange rate, inflation, electricity generation mix, and fuel costs. This mechanism aims to prevent both under-recovery and over-recovery of revenues by utility providers. Under-recovery can lead to service disruptions. Over-recovery places an unnecessary financial burden on consumers. INSTEPR believes the PURC's inconsistent use of historical versus forward-looking data complicates analysis. This switching between methodologies makes it hard for experts and consumers to judge the fairness of tariff adjustments. A consistent approach would enhance transparency and trust in the tariff-setting process.