The Public Utilities Regulatory Commission (PURC) has stated that reversing the proposed utility tariff hike for the third quarter of this year may be extremely difficult.

According to the utility regulator, the tariff adjustments are necessary to ensure a stable power supply, address the rising cost of financing fuel for electricity generation, and maintain the financial viability of power producers and distribution companies.

The Executive Secretary of the PURC, Dr Shafic Suleman, disclosed this in an interview on the PM Express Business Edition with host George Wiafe on June 25, 2026.

He noted that the power sector is burdened with significant debt and said stakeholders must explore innovative ways to address the challenge, leading to the proposed tariff review.

On concerns about how PURC arrived at the tariffs, Dr. Suleman said the review was based on the same pricing guidelines that have been used over the past quarters this year.

He added that “the only difference now is we have factored some forward-looking indicators such as inflation and the cedi’s performance”.

Dr. Suleman also explained that “we have done our best as a regulator to put in place the necessary pressure on the power distributors and producers to deal with the distribution and commercial losses, as we work to achieve full cost recovery for the sector”.

Background

The Public Utilities Regulatory Commission (PURC) on June 22, 2026, announced an upward adjustment in electricity and water tariffs. Electricity tariffs went up by 3.49%, whilst water tariffs rose by 0.85%, effective July 1, 2026.

In a statement issued on June 22, 2026, the Commission said the adjustments form part of its quarterly tariff review mechanism aimed at reflecting changes in key operational factors that affect utility service providers.

These factors include the exchange rate between the Ghana cedi and the US dollar, inflation, the electricity generation mix, and the cost of fuel, particularly natural gas used in thermal power generation.

According to PURC, the review is intended to maintain the real value of tariffs, ensure the financial viability of utility companies, and support the delivery of reliable services while taking into account the impact on consumers.

However, this increment has been met with some opposition from businesses

Justification of Hikes

The PURC responded that failure to review the tariffs will come with some shocks against the power sector.

“Even with these current tariff levels, most of the utility companies are still not breaking even, in terms of revenue. That is why government has to step in always to make up for the rest every month”, the Executive Secretary added.

He also explained that the model used in setting tariffs this quarter has not changed that much; only that this time round, we have also factor some forward-looking indicators.

“This was to ensure that we are not overtaken by events, especially when it comes to the exchange rate effect,” Dr. Suleman added

On complains about irregular power supply, the Executive Secretary mentioned that significant progress has been made to address the problems.

“Most of them were caused by transformer upgrade and now that most of them have been fixed, I think the situation has normalised,” Dr. Suleman added.