The West African Regional Director of CUTS International, Appiah Adomako Kusi, has strongly criticised the Public Utilities Regulatory Commission’s (PURC) recent 2.45% increase in electricity tariffs, describing it as illogical and lacking transparency.
Speaking on Channel One TV’s Breakfast Daily on Friday, June 27, Adomako Kusi questioned the basis for the adjustment, particularly at a time when the cost of thermal energy generation, the country’s dominant energy source, has significantly declined.
“We know that Ghana’s energy mix is largely thermal, about 72% thermal and 28% hydro. Thermal generation depends heavily on natural gas and crude oil, both of which are dollar-denominated. If prices for these thermal inputs have dropped by as much as 30%, and we know most of our electricity is generated through thermal means, then it makes no scientific or economic sense to raise tariffs. This defies logic, “he said.
Mr. Kusi called on the PURC to publicly disclose the methodology behind the new tariff adjustment, insisting that Ghanaians deserve a clear explanation.
“PURC must come clean with the calculation that led to this 2.45% increment,” he stated.
The PURC, in a statement issued on Wednesday, June 25, announced that the new tariffs will take effect from July 1, 2025. The Commission said the adjustment followed its regular quarterly review, which considers a range of economic indicators including the cedi-dollar exchange rate, inflation trends, natural gas prices, and the overall electricity generation mix.
While electricity tariffs are set to rise, water tariffs will remain unchanged for the third quarter of the year. The Commission defended its decision as necessary to ensure the financial sustainability of utility providers.
However, the explanation appears not to have satisfied stakeholders like CUTS International, who have demanded accountability and greater clarity in how such decisions are reached, especially amid ongoing economic pressures on consumers.