The Public Utilities Regulatory Commission (PURC) has announced significant upward adjustments in electricity and water tariffs, following the completion of its 2026–2030 Multi-Year Tariff Review (MYTO).
The new rates, which take effect on January 1, 2026, mark the beginning of a new five-year regulatory cycle that reflects investment needs, macroeconomic pressures, and the operational realities of Ghana’s utility providers.
In a statement issued on Tuesday, the Commission said the tariff decision was the culmination of months of nationwide consultations, including investment hearings, stakeholder engagements, and regional public forums aimed at gathering public input and ensuring transparency in the tariff-setting process.
Electricity consumers will, from January, pay 9.86 per cent more across all customer categories.
The PURC explained that the adjustment was driven by a combination of factors, including the investment requirements of the electricity utilities, projected generation inputs, and key macroeconomic indicators such as inflation, the exchange rate, and the cost of natural gas.
The review also assessed operational expenses and the regulated asset base of utilities over the next five years.
While the MYTO sets the medium-term framework, quarterly tariff reviews will continue to account for variables outside the control of utility companies, chiefly fuel prices and changes in the generation mix.
Water tariffs will also rise by 15.92 per cent for the 2026–2030 period, reflecting the sector’s capital needs and production dynamics.
The Commission said the adjustment was based on projected production and sales volumes, the level of non-revenue water, expected investment requirements, and prevailing economic conditions.
Under the new structure, residential consumers will see increases across all consumption bands, while non-residential, commercial, industrial and public institutions will equally face higher rates. Service charges, however, will largely remain unchanged.
A key innovation in the 2026–2030 MYTO cycle is the inclusion of tariffs for mini-grids serving island and remote communities.
For the first time, the cost of supplying power to these areas at uniform national rates has been incorporated into the revenue requirement of the Volta River Authority (VRA), a move the PURC says will streamline implementation and ensure equitable access to electricity.
Several technical and economic variables influenced the new tariffs. For electricity, projected generation for the period is expected to rely heavily on thermal plants, which will account for 78.79 per cent of the energy mix, with hydro contributing 20.90 per cent and renewables just 0.31 per cent.
The Weighted Average Cost of Gas (WACoG) is forecast to rise to US$7.8749 per MMBtu, placing additional pressure on generation costs.
The review also adopted improved targets for transmission and distribution losses, as well as economic assumptions, including an inflation rate of eight per cent and an exchange rate projection of GH¢12.01 to the US dollar.
In the water sector, non-revenue water — the portion lost through leakages, illegal connections, and other inefficiencies — is projected to decline to 43% over the tariff period, a benchmark the Commission says is critical to sustaining the investment and operational plans of the utility.
Updated production and sales forecasts also informed the approved tariffs.
The PURC emphasised that the adjustments are necessary to maintain the financial viability of utility providers, sustain infrastructure investments, and ensure reliable service delivery.
It assured consumers that it remains committed to balancing the interests of utilities and the public while safeguarding the stability of Ghana’s energy and water sectors over the next regulatory cycle.
