The Public Utilities Regulatory Commission (PURC) has approved increases in electricity and water tariffs that will take effect from January 1, 2026, under its 2026 to 2030 Multi-Year Tariff Order.
Electricity tariffs across all customer categories will increase by 9.86 percent, while water tariffs will rise by 15.92 percent over the five year control period. The Commission announced the adjustments on December 3, following months of investment hearings, stakeholder consultations and regional public forums.
For residential electricity customers, lifeline consumers using between zero and 30 kilowatt hours (kWh) per month will see their tariff increase to 88.37 pesewas per kWh, up from 80.43 pesewas. Residential customers consuming zero to 300 kWh will now pay 200.22 pesewas per kWh, compared to the existing 182.24 pesewas. Those consuming 301 kWh and above will pay 264.56 pesewas per kWh, up from 240.81 pesewas.
Non residential customers will also face higher charges. Tariffs for consumption up to 300 kWh will increase from 164.54 pesewas per kWh to 180.77 pesewas, while customers consuming 301 kWh and above will now pay 224.65 pesewas per kWh, up from 204.48 pesewas.
Water tariffs will see a steeper increase across all categories. For residential customers, consumption of zero to five cubic metres will increase from 528.18 pesewas per cubic metre to 612.25 pesewas. Consumption above five cubic metres will rise from 934.46 pesewas to 1,083.20 pesewas per cubic metre. Non residential water users will pay 1,832.57 pesewas per cubic metre, up from 1,580.92 pesewas.
The PURC said the adjustments reflect investment needs of power utilities, projected generation inputs and macroeconomic indicators including inflation, the cedi to US dollar exchange rate and the cost of natural gas. The Commission projected a generation mix of 78.79 percent thermal power, 20.90 percent hydro and 0.31 percent renewables for 2026. The Weighted Average Cost of Gas is expected to rise to US$7.8749 per million British thermal units.
The approved exchange rate for the tariff period is 12.0067 Ghana cedis per US dollar, with an inflation benchmark of eight percent. These figures compare to a 2025 baseline exchange rate of 12.3715 cedis and inflation of 12.43 percent.
The Commission said the water tariff adjustment was driven by production and sales projections, expected investment requirements and efforts to reduce non revenue water to approximately 43 percent over the period. For the first time, the review includes tariffs for mini grids supplying island and remote communities, with costs factored into the revenue requirement of the Volta River Authority (VRA).
The new tariffs will remain in place for five years but will be subject to quarterly reviews to account for variables beyond utility control, including fuel costs, exchange rate fluctuations and changes in the generation mix. The PURC said quarterly adjustments aim to preserve the real value of tariffs and maintain the financial viability of service providers.
The regulator said the adjustments were necessary to ensure the financial sustainability of utilities, maintain infrastructure and improve service delivery while balancing consumer protection. It encouraged consumers to adopt efficient usage practices to manage costs and pledged continued regulatory oversight throughout the 2026 to 2030 tariff period.
The announcement has drawn mixed reactions from consumer groups and industry stakeholders. Some citizens who participated in public hearings earlier this year expressed concern that higher tariffs would worsen the cost of living and strain household budgets at a time when food, transport and housing costs are already rising.