Two prominent civil society organizations, CUTS International Accra and the Centre for Environmental Management and Sustainable Energy (CEMSE), are calling for the suspension of the Public Utilities Regulatory Commission’s (PURC) planned 2.43% electricity tariff increase, set to take effect on July 1, 2025. They argue that the adjustment process has lacked transparency and fairness, disregarding key macroeconomic indicators that should inform such decisions.
In a joint statement, the organizations highlighted that the recent appreciation of the Ghanaian cedi against the US dollar and declining inflation rates should have prompted a reduction, not an increase, in electricity tariffs. They referenced Section 3(c) of the PURC Act 538 of 1997, which mandates fair pricing for all stakeholders.
CUTS International’s West Africa Regional Director, Mr. Appiah Kusi Adomako, and CEMSE’s Executive Director, Mr. Benjamin Nsiah, noted that the cedi had strengthened by over 30% in early 2025, resulting in excess payments by consumers that could have addressed outstanding debts. They criticized the PURC for applying a higher inflation rate of 20.67% when national inflation had actually dropped to 18.4%.
Additionally, they questioned the relevance of the marginal increase in gas costs in the tariff calculation and raised concerns over a lack of public disclosure regarding a GH¢488 million arrears component. The organizations emphasized that the PURC failed to engage stakeholders before introducing new pricing variables and did not provide sufficient documentation to support the tariff adjustments.
They warned that continual tariff increases without addressing underlying inefficiencies could jeopardize the sustainability of Ghana’s energy sector. The CSOs are urging the PURC to halt the tariff increase and provide full transparency regarding the assumptions, methodology, and cost breakdown involved in the decision.