A review conducted by the Centre for Environmental Management and Sustainable Energy (CEMSE) indicates that Ghanaian electricity consumers may have overpaid approximately GH¢1.5 billion in the fourth quarter of 2025 due to inflated exchange rate and inflation assumptions used in tariff calculations.
According to Mr Benjamin Nsiah, Executive Director of CEMSE, prevailing economic conditions warrant a double-digit reduction in electricity tariffs, potentially around 11 per cent in the first quarter of 2026.
The report examined the methodology adopted by the Public Utilities Regulatory Commission (PURC), which utilised a projected exchange rate of GH¢11.9735 to the dollar for Q4 2025, adjusted to GH¢12.3715 to account for under-recovery claims.
However, the actual average exchange rate for the period was GH¢10.8733 to the dollar, resulting in an over-recovery of GH¢1.1002 per dollar. Based on total quarterly electricity consumption of 6,459 gigawatt-hours, with 60 per cent of generation costs being dollar-denominated, CEMSE estimates that consumers paid approximately GH¢1.5 billion in costs utilities did not incur.
Furthermore, discrepancies in inflation projections were noted, with PURC applying a 12.43 per cent annual inflation rate, while actual average inflation for the quarter was 6.6 per cent.
Despite successive tariff increases, revenue performance at the Electricity Company of Ghana (ECG) has remained volatile, with revenue fluctuating between GH¢1.3 billion and GH¢1.6 billion.
Mr Nsiah stressed that with the current exchange rate at GH¢10.99 to the dollar and projected Q1 2026 inflation at 3.4 per cent, failure to implement a significant tariff reduction would undermine the credibility of the quarterly review mechanism.
CEMSE maintains that over-recoveries should be formally recognised and credited to consumers before new tariff adjustments are introduced, warning that failure to act could erode public confidence in the regulatory framework and increase pressure on households and businesses.
By: Rainbowradioonline.com/Ghana
