PURC justifies tariff hikes, says measures not against consumer interests

Dr. Eric Kofi Obutey, Director of Research and Corporate Affairs at the Public Utilities Regulatory Commission (PURC), has defended the Commission’s recent tariff adjustments, asserting that they were not implemented at the expense of consumers.

This follows PURC’s announcement of a 14.75% increase in average end-user electricity tariffs and a 4.02% rise in water tariffs across all consumer categories. The adjustments fall under the Commission’s quarterly tariff review process for the first and second quarters of 2025.

Speaking in an interview on Eyewitness News on Citi FM on Monday, April 14, Dr. Obutey explained that the upward adjustments were necessitated by several economic and operational indicators, including the exchange rate between the Ghana cedi and the US dollar, inflation projections, fuel costs (particularly natural gas), and the current hydro-thermal generation mix.

He clarified that while minor tariff adjustments are not subject to public consultations, the PURC uses a standard set of parameters to ensure that rates reflect prevailing economic realities.

He also revealed that a major tariff review is expected in the next quarter, which will factor in capital and operational expenses. However, he could not confirm whether this would lead to a further increase or decrease in utility prices.

“As it stands now, I cannot determine in the next tariff window there will be an upward or downward review of tariff. I don’t really know how it will go. It will all depend on the factors that will come into play,” Dr. Obutey noted.

The PURC reaffirmed its commitment to striking a balance between sustaining utility service providers and protecting the interests of consumers.

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