Energy Ministry Defends 2026 Tariff Increase as Key to Protecting Ghana’s Utility Sector

The Ministry of Energy and Green Transition has addressed public concerns over the Public Utilities Regulatory Commission’s (PURC) decision to raise electricity tariffs by 9 percent starting January 2026. The clarification came after criticisms from the Trades Union Congress (TUC) and the Minority in Parliament.

Speaking on behalf of the ministry, spokesperson Mr. Richmond Rockson explained that the adjustment forms part of broader reforms that have strengthened the financial stability of Ghana’s energy sector. He highlighted that the current increase is significantly lower than the previous rise of more than 27 percent.

Mr. Rockson attributed this reduction to deliberate reforms championed by Minister of Energy and Green Transitions Hon. John Abdulai Jinapor and supported by improvements in the national economy. He said these changes have helped reduce the pressures that typically necessitate larger tariff hikes.

Responding to the TUC’s concerns, Mr. Rockson acknowledged that tariff adjustments are often unpopular but remain vital. He stressed that the PURC’s January 2026 decision is necessary to cover capital needs, utility investments, and long-term infrastructure expansion.

He further noted that since January 2025, government interventions such as strengthened revenue collection by ECG, strict enforcement of the Cash Flow Waterfall Mechanism, and timely payments to Independent Power Producers—have improved reliability in power supply.

According to Mr. Rockson, these reforms have boosted the financial health of utility companies, helping them maintain stable electricity delivery nationwide. However, he warned that continued investment is essential to sustain these gains and meet rising energy demand.

Mr. Rockson concluded that the revised tariff structure is designed not only to protect utility providers but also to support critical medium- and long-term investments needed to secure Ghana’s energy future.