The Trades Union Congress (TUC) and the Public Utilities Regulatory Commission (PURC) have agreed to deepen collaboration to address the impact of the 2026 to 2030 Multi-Year Tariff Order (MYTO) on workers and the Ghanaian economy. The agreement follows meetings held on December 11 and 30, 2025, where both institutions deliberated on PURC’s announcement of the new MYTO, which takes effect on January 1, 2026.
Ghana’s public utilities regulatory commission has approved a 9.86 percent increase in the electricity tariff and a 15.92 percent increase in the water tariff, effective January 1, 2026, under its 2026 to 2030 MYTO. The PURC conducted a mandatory major Multi-Year Tariff Review for the 2026 to 2030 period, as required every three to five years under the PURC Act, 1997 (Act 538).
In a joint statement, the TUC and PURC said discussions centred on the implications of the tariff adjustments for the cost of living, electricity supply stability, and investment in the power and water sectors. The joint statement was signed in Accra on December 30, 2025, by TUC Secretary General Joshua Ansah and PURC Executive Secretary Shafic Suleman.
The PURC emphasised that reversing the tariff decision could compromise its independence and affect the stability of the energy and water sectors, as well as the broader economy. The Commission maintained that cost reflective tariffs are necessary to ensure reliable service delivery, maintain infrastructure, and attract investment into the utilities sector.
However, the Commission acknowledged the concerns raised by the TUC and pledged to consider them during the next tariff review. The regulator offered assurances that affordability considerations remain part of the regulatory process going forward.
The TUC emphasized the immediate impact of the tariff adjustments on workers and stated it will continue to monitor their effects on salaries and wages. The Congress indicated that the outcome of this monitoring exercise will inform its subsequent course of action.
The Secretary General of the TUC, Joshua Ansah, had earlier stated that the Steering Committee of the TUC deliberated extensively on the tariff increment decision, including the processes followed by the PURC. Ansah questioned why workers should pay for the new tariff increment that comes into effect on January 1, 2026, when their meagre nine percent pay adjustment will be paid at the end of January.
The joint statement indicated that the TUC shall engage the government on the current wage levels and their impact on the cost of living circumstances of the Ghanaian worker. This underscores concerns that wage growth has not kept pace with rising utility and household costs.
Both parties highlighted the importance of ongoing dialogue to ensure tariff decisions balance affordability, electricity stability, water access, and economic growth for Ghanaian workers. The engagements highlighted the importance of continued dialogue and collaboration to ensure that tariff decisions are made in a manner that safeguards electricity stability, improves water access, economic stability, and affordability while addressing the concerns of workers.
According to the PURC, the increase was necessary to align tariffs with the investment needs of the Volta River Authority (VRA), the Electricity Company of Ghana (ECG), the Ghana Water Company Limited (GWCL) and other utilities. The Commission evaluated each utility’s regulated asset base to determine the capital expenditure (CAPEX) required between 2026 and 2030, ensuring providers can maintain infrastructure and improve service reliability.
The PURC used an exchange rate of GH¢12.0067 per United States dollar and an inflation benchmark of eight percent for the 2026 to 2030 period, compared to the 2025 baseline of GH¢12.3715 and 12.43 percent inflation. The share of thermal power will rise from 70.75 percent in 2025 to 78.79 percent during the tariff period, while the share of hydro power will fall from 28.80 percent to 20.90 percent.
The 2026 to 2030 MYTO introduces the integration of mini grids into the national tariff framework, reflecting the PURC’s goal of expanding universal access to electricity, especially in island and lakeside communities. Quarterly adjustments will continue during the tariff period to account for variables beyond utility control, currency stability, inflation, fuel prices and the generation mix.
Despite PURC’s justification, many consumers and civil society groups have voiced strong opposition to the increases. Residents at public hearings argued that higher tariffs would worsen the cost of living, strain small businesses, and disproportionately affect low income households.
The agreement between TUC and PURC represents an effort to balance worker welfare with the financial sustainability of the energy and water sectors. Both institutions have committed to continued collaboration as the new tariff cycle takes effect, with the TUC maintaining its position that wage adequacy must be addressed alongside utility cost increases.