Audio By Carbonatix
The recent a 1.14% hike in electricity tariff with effect from 1st October 2025 will not have inflation in the final quarter of this year, as the favourable base effect in the upcoming months beginning in September 2025 will outweigh this modest hike in electricity tariff.
However, businesses, particularly Fast-Moving Consumer Goods and Oil Marketing Companies, that rely heavily on grid-powered electricity for operations would experience a modest uptick in operational charges.
According to IC Research, a leading financial and investment research firm, this strengthens the case for TOTALEnergies to sustain the ongoing solarisation of its service stations which contributed to the containment of operational expenditure growth at 12.9% year-on-year in half-year 2025 (below average inflation).
However, Fan Milk PLC will likely face further cost headwinds in the quarters ahead, having grappled with a 44.2% year-on-year growth in operational expenditure in the first-half of 2025.
It continued that the government renewed commitment to the quarterly adjustment formula is positive for the energy sector as it helps stakeholders move towards what they perceive as "cost reflective tariff".
“Also, we continue to observe compliance by the Electricity Company of Ghana (ECG) with the Cash Waterfall Mechanism agreed for paying service providers within the energy sector. The ECG has fully complied with payments so far this year, partly due to the enforcement of a Treasury Single Account for the ECG”, it added.
It mentioned that latest available data (July 2025) revealed that the ECG fully complied with the agreed disbursement amounts for all Level A beneficiaries (seven IPPs and two fuel suppliers) and Level B beneficiaries (State entities in the sector).
From June 2025 to September 2025, the Government of Ghana via the Ministry of Finance disbursed a total of US$682.31 million to support the energy sector. This figure comprises of US$94.04 million for liquid fuel, US$152.38 million for IPPs, and US$435.88 million for gas supplies and transportation services.
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