The Institute for Energy Policies and Research (INSTEPR) has urged the Public Utilities Regulatory Commission (PURC) to suspend its proposed third-quarter utility tariff increases. INSTEPR argues that PURC's own data does not justify the adjustments, which include a 3.49% rise for electricity and 0.85% for water.
This appeal follows PURC's announcement of these tariff hikes for the third quarter of 2026. INSTEPR believes these increases are unjustifiable given a declining inflation rate and minimal cedi depreciation. Many Ghanaians are currently struggling with the rising cost of living.
These tariff adjustments directly affect household budgets and operational costs for businesses across Ghana. Utility tariffs are a significant component of the cost of living index. Inconsistencies in their calculation can erode public trust in regulatory bodies. Ghana's economy has experienced fluctuating inflation rates in recent years, making transparent utility pricing crucial for stability.
K.N. Poku, Executive Director of INSTEPR, signed a statement on June 24, 2026. The statement highlighted inconsistencies in PURC's methods for quarterly tariff reviews. INSTEPR reported that its assessment showed PURC did not consistently apply its established Quarter Tariff Adjustment mechanism.
The mechanism aims to reflect changes in factors like the cedi-to-dollar exchange rate, inflation, electricity generation mix, and fuel costs. These factors directly influence utility costs. INSTEPR noted that PURC sometimes relied on historical data and at other times used forward rates. This inconsistent approach makes it difficult for analysts to evaluate the fairness of tariff decisions.
INSTEPR questioned the basis for the latest tariff increases. It pointed to PURC's own data from June 22, 2026. This data showed the cedi depreciated by only 0.2% during the review period. Furthermore, inflation fell by 17.74%, and the Weighted Average Cost of Gas (WACOG) declined by 1.58%.
The think tank noted that PURC did not report any under-recoveries from the previous quarter. Such under-recoveries might typically justify higher tariffs. Given these economic indicators, INSTEPR found it difficult to reconcile PURC's data with the proposed increases.
INSTEPR recommends that PURC adopt a clear and standard methodology for all future quarterly tariff reviews. A consistent approach would enhance transparency and predictability in the utility sector. It would also help to build public confidence in PURC's decisions.
Going forward, decision-makers will closely monitor PURC's response to these concerns. Market participants and consumers will watch for any reconsideration of the proposed tariffs. Greater consistency in tariff adjustments could lead to more stable planning for both households and businesses. A clear methodology will also contribute to better economic forecasting and reduce uncertainty.