From October 1, 2025, Ghanaians will see a slight increase in their electricity bills after the Public Utilities Regulatory Commission (PURC) approved a 1.14% tariff adjustment for all consumer categories. Water tariffs, however, will remain unchanged for the same period.
Why the Increase?
According to PURC, the adjustment follows its Quarterly Tariff Review Mechanism, which factors in key economic indicators that affect the cost of power generation and delivery. These include:
- The Ghana cedi–US dollar exchange rate
- Domestic inflation trends
- Fuel costs, especially natural gas
- The overall electricity generation mix
The Commission explained that the move is necessary to maintain the real value of tariffs and keep utility companies financially stable, ensuring uninterrupted power supply.
The Economic Drivers
The decision was based on the following projections:
- Exchange rate: GHS12.3715 per US$1, factoring in an under-recovery of GHS0.3980 per US$1 from the previous quarter.
- Inflation: Annual average of 12.43% for Q4 2025.
- Natural gas cost: Weighted average of $7.7134/MMBtu.
- Generation mix: 28.80% hydro and 71.20% thermal.
These parameters directly influenced the modest 1.14% increase in electricity tariffs.
Water Tariffs Unchanged
While electricity costs are going up, PURC confirmed that water tariffs will remain unchanged during this review period. The Commission says this balance protects households from steep utility burdens while keeping providers sustainable.
What It Means for Consumers
Though the increase is relatively small, households and businesses will still feel the impact on their monthly budgets. PURC has assured the public that it will continue to monitor utility providers closely, enforcing compliance and ensuring value for money.
Do you think the 1.14% electricity tariff increase is justified? Share your views in the comments below.
