The Public Utilities Regulatory Commission (PURC) has approved new increases in electricity and water tariffs, saying the adjustments are necessary to keep the country’s cash-strapped utility companies functioning. The new rates take effect on 1 January 2026 and follow a multi-year tariff review that assessed the financial needs of the major providers.
Electricity tariffs will rise by 9.86 percent for all categories of consumers, while water bills will increase by 15.92 percent. The PURC, which announced the changes after completing its 2026–2030 tariff framework, said the decision reflects the real cost of producing and distributing the services. It cited inflation, the depreciation of the cedi, rising gas and fuel prices and the need for investment in aging infrastructure as major factors behind the rise.
The increases come after months of appeals from the Electricity Company of Ghana and the Ghana Water Company, both of which warned that years of under-recovery had left them unable to meet operational and maintenance costs. Some proposals submitted by the utilities called for far steeper increases, but PURC said it applied a balanced approach aimed at keeping the companies solvent without placing undue strain on consumers.
The regulator noted that the new tariff structure also incorporates cost recovery for mini-grid communities that are not connected to the national grid, bringing their billing regime into line with the main power system.
For ordinary Ghanaians, the decision means higher monthly bills at a time when inflation and cost-of-living pressures remain high. Consumer groups say the increases could hit low-income households particularly hard, especially in areas where no alternatives for electricity or treated water exist.
Utility officials, however, argue that without the adjustments, service delivery risks further deterioration. They say additional revenue is needed to expand networks, upgrade obsolete equipment and reduce technical losses that continue to drain resources.
Analysts say tariff reviews are likely to continue on a quarterly basis, as PURC routinely adjusts rates in line with changes in fuel costs, inflation and the exchange rate. This means further increases cannot be ruled out in the months ahead.
The government has not yet announced whether any relief measures will accompany the new tariffs, but economic commentators warn that unless service reliability improves, public frustration over rising utility costs could intensify.
