Accepting the Public Utilities Regulatory Commission’s (PURC) recent water and electricity tariff adjustments is a necessary step for Ghanaians, according to energy expert Samson Addae.
He maintains that the revised rates are entirely justified and urges the public to comply with them.
Mr Addae explains that these adjustments align with International Monetary Fund (IMF) conditionalities, noting that the July review mirrors previous tariff changes that consumers have already accepted and settled.
While speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he highlighted that the PURC calculated the revised figures by weighing critical economic indicators, specifically inflation and the strength of the cedi.
Consequently, the energy expert dismisses the parliamentary minority’s demands for the government and the regulator to suspend the price hikes.
He views the tariff increase not as an arbitrary penalty, but as a collective financial obligation that the nation must confront immediately.
“Refusing to accept and pay now will only push costs onto the future,” Mr Addae warns, stressing that delaying the inevitable will ultimately “force the government to borrow more to cover the shortfall — an outcome that would be worse.”
Background
The Public Utilities Regulatory Commission (PURC) has announced an upward review of electricity and water tariffs, set to take effect from July 1, 2026.
Under the new directive, electricity tariffs will rise by 3.49 per cent across the board, while water tariffs will see a marginal increase of 0.85 per cent.
According to the regulatory body, the quarterly adjustments are essential to track and incorporate shifting operational factors that fall outside the control of utility service providers.
These variables include the domestic inflation rate, the electricity generation mix, the cost of natural gas, and the exchange rate between the Ghana Cedi and the US Dollar.
In a statement explaining the decision, the Commission noted that the measures are vital to safeguard the financial viability of service providers while ensuring stable delivery.
“These Quarterly adjustments are undertaken by the Commission to maintain the real value of the existing tariffs, which would enable the utility service providers to remain financially viable and to deliver on their services to consumers,” the PURC stated. The regulator added that the decision was finalised “while bearing in mind the impact of these tariffs on the wellbeing of consumers in general.”
A review of the underlying metrics revealed a 0.2 per cent depreciation of the Ghana Cedi against the US Dollar, moving to a weighted average exchange rate of GHS 11.2228.
The average inflation rate saw a downward shift to 3.43 per cent, and the weighted average cost of natural gas dropped by 1.58 per cent to USD 7.9708 per MMBtu.
By: Rainbowradioonline.com/Ghana
