The Institute for Energy Policies and Research (INSTEPR) has called on the Public Utilities Regulatory Commission (PURC) to suspend its proposed third-quarter utility tariff adjustment, arguing that the increases are not supported by the Commission's own data and come at a time when many Ghanaians are grappling with a high cost of living.

In a statement issued on June 24, 2026, signed by its Executive Director, K.N. Poku, the energy policy think tank also urged the regulator to adopt a standard and transparent methodology for quarterly tariff reviews to ensure consistency and predictability in future adjustments.

The call follows PURC's announcement of a 3.49 per cent increase in electricity tariffs and a 0.85 per cent increase in water tariffs for the third quarter of 2026.

According to INSTEPR, its review of the latest tariff adjustment revealed what it described as inconsistencies in the methodologies employed by the Commission over the years.

The institute noted that the Quarterly Tariff Adjustment mechanism is designed to account for changes in four key variables that affect utility costs: the cedi-to-dollar exchange rate, inflation, the electricity generation mix and the cost of fuel, particularly natural gas.

It explained that the review mechanism was introduced to prevent both under-recovery and over-recovery of revenues by utility service providers.

INSTEPR said under-recovery could undermine the ability of utility companies to provide reliable electricity and water services, potentially resulting in service disruptions, while over-recovery places an unnecessary financial burden on consumers.

"The process therefore helps the Commission to maintain the real value of the tariffs over the adjustment period," the statement said.

However, the institute argued that the Commission's approach to calculating tariff adjustments has not been consistent.

According to INSTEPR, PURC has in some instances relied on historical data while in other quarters it has used forward rates to determine projected weighted averages.

The think tank said the apparent switching between methodologies makes it difficult for analysts and consumers to assess the consistency and fairness of tariff adjustments.

"Switching between these methodologies makes it difficult to analyse the consistency of tariff adjustments undertaken by the Commission," the statement noted.

INSTEPR further questioned the basis for the latest tariff increases, contending that the data cited by PURC does not appear to justify the proposed adjustments.

The institute pointed to figures contained in the Commission's June 22, 2026 statement, which indicated that the cedi had depreciated by only 0.2 per cent during the review period.

It also noted that inflation had declined by 17.74 per cent, while the Weighted Average Cost of Gas (WACOG) recorded a downward adjustment of 1.58 per cent.

Additionally, INSTEPR said the Commission had not reported any under-recoveries from the previous quarter that would warrant higher tariffs.

Based on these factors, the institute argued that the proposed increases in electricity and water tariffs were difficult to reconcile with the data presented by the regulator.

Against this backdrop, INSTEPR appealed to the PURC to suspend the implementation of the third-quarter tariff adjustment to provide relief for consumers facing rising living costs.

The institute also urged the regulator to establish and adhere to a standard methodology for future quarterly tariff reviews, maintaining that a uniform approach would enhance transparency, improve public confidence in the tariff-setting process and make it easier for stakeholders to evaluate the basis of tariff decisions.