President John Dramani Mahama has stated that the significant tariff increases proposed by the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) are not guaranteed to be approved.
During a media encounter at Jubilee House on September 10, 2025, President Mahama addressed a question from a journalist regarding the potential impact of these hikes on his administration’s “24-hour economy” initiative.
Both the ECG and GWCL have cited rising operational costs as the reason for their requests. At public hearings hosted by the Public Utilities Regulatory Commission (PURC), the ECG has proposed a 225% increase in its distribution service charge (DSC-1), from 19 pesewas to 61 pesewas per kilowatt-hour.
Similarly, the GWCL is seeking a 280% tariff increase, attributing the need for this adjustment to the high cost of treating water polluted by illegal mining, or galamsey.
In response to concerns that these increases could negatively affect businesses participating in the “24-hour economy,” President Mahama assured the public that the proposed adjustments would be thoroughly evaluated before any final decision is made.
The president stated that Ghana’s Public Utilities Regulatory Commission (PURC) conducts periodic reviews of proposals submitted by utility companies like Ghana Water and the Electricity Company of Ghana (ECG).
He noted that the proposed adjustments are not automatically implemented.
The PURC, as the regulator, considers various factors, including the exchange rate and production costs, to determine an acceptable tariff increase. Therefore, a proposal for a significant increase, such as Ghana Water’s proposed 200 percent hike, does not guarantee its approval by the PURC.
The president also mentioned that similar scrutiny applies to ECG’s proposed tariff adjustments.
The president further explained that a key reason for the continuous increase in tariffs is the significant revenue loss from individuals who don’t pay for the power and water they consume.
He pointed out that ECG alone loses approximately 42% of its total revenue. He concluded by urging the heads of these utility companies to take action against those engaged in power and water theft.
By: Rainbowradioonline.com/Ghana .