These factors, according to PURC, are responsible for electricity tariff increase
According to Kponyo, the Commission's quarterly tariff reviews are guided by several critical parameters aimed at ensuring fairness and sustainability within Ghana’s utility sector.
The Public Utilities Regulatory Commission (PURC) in the Upper East Region has outlined key economic and operational factors behind the recent 2.45% increase in electricity tariffs, in July 2025.
Water tariffs, however, remain unchanged across all consumer categories.
The explanation was given by the Upper East Regional Manager of the Commission, Seth Kponyo, during an appearance on Utility Hour, a weekly current affairs radio program on Mike 105.3FM, on Thursday, July 3.
According to Kponyo, the Commission’s quarterly tariff reviews are guided by several critical parameters aimed at ensuring fairness and sustainability within Ghana’s utility sector.
“The parameters considered include the cost of natural gas; the second one is the exchange rate, especially the Ghana cedi to the US dollar. Then the generation mix here, I’m talking about the quantity of power from hydro and then the quantity from thermal, and the last is the inflation rate,” he explained.
He noted that these factors are used to determine the real cost of delivering utility services, and adjustments are made accordingly to reflect economic conditions and ensure service continuity.
Addressing the recent 2.45% increase in electricity tariffs, Kponyo stated that it was primarily influenced by significant arrears carried over from previous quarters.
“This third quarter tariff, the main reason for the increment, is the changes in these parameters. In the fourth quarter of 2024, the first quarter of 2025, and then the second quarter of 2025, the tariff went up because of arrears of 488 million Ghana cedis,” he said.
Kponyo reiterated that the PURC is committed to protecting the interests of both consumers and utility service providers. He assured the public that every tariff adjustment is made following a rigorous, data-driven process intended to guarantee efficiency and fairness in the provision of electricity and water.
The PURC conducts tariff reviews every quarter as part of its mandate to ensure utility services remain financially viable while being affordable for consumers.
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