By Francis Kobena Tandoh
The New Patriotic Party (NPP) Minority Caucus in Ghana’s Parliament has kicked against the utility tariff increment announced by the Public Utility Regulatory Commission (PURC) last week.
Addressing a press conference on Monday, Hon. George Kwame Aboagye, Ranking Member on the Energy Committee and MP for Asene Manso Akroso, argues that the increases are punitive and not genuine reforms, as they come at a time when consumers are already under pressure.
He observed that instead of correcting inefficiencies at utility companies like Electricity Company of Ghana (ECG) and Ghana Water Company Limited (GWCL), the government is shifting the burden onto households and businesses.
They warn the hikes will wipe out the real benefit of a recent 9 percent wage increase agreed for 2026, stressing that people’s purchasing power will effectively shrink.
The Minority also cautions that small and medium-scale enterprises (SMEs), which are often operating on thin margins risk collapse under the rising operating costs.
The Minority is therefore calling for the immediate reversal of the new electricity and water tariff increases and proposes systemic reforms in the utility sector by tackling commercial and technical losses, improving efficiency at ECG and GWCL, and ensuring utility companies are held accountable before passing costs to consumers.
“These tariff hikes are not reforms—they are punishments,” he said. “They are not solutions. They are symptoms of failed leadership and poor policy choices. We call on the government to halt these incessant increases. The Minority stands with Ghanaian workers, households, small businesses, and industries struggling to survive. These tariff hikes must be reversed immediately,” said Hon. Aboagye.
He is also calling for protective measures for consumers and support for vulnerable households and businesses, especially small businesses.
The Public Utilities Regulatory Commission last week approved a 9.86 percent increase in electricity tariffs and a 15.92 percent rise in water tariffs effective January 1, 2026, as part of its multi-year review from 2026 to 2030.
According to the PURC says the tariff increases are needed to meet the investment needs of utility providers, cover rising operational costs, and maintain financial viability under inflation, exchange-rate volatility, and other macroeconomic pressures.
However, critics argue PURC’s justifications are weak given the scale of power losses in the country and alleged inefficiencies at ECG and GWCL.
Because systemic inefficiencies continue to plague the supply side (power losses, leakages, theft, weak infrastructure), many, including the Minority, believe passing costs to paying consumers without first fixing the base problems is unjust.
The increase comes amid economic hardship and high inflation, as many households may struggle to afford basic utilities like electricity and water.
SMEs could be especially hard hit, with rising costs potentially forcing some to downsize or shut down.
Labour gains (e.g., wage increases) risk being undermined by rising living costs, potentially deepening inequality and economic hardship for low- and middle-income Ghanaians. Enditem
Source: Ghana Eye Report
Share Us
