The Public Utilities Regulatory Commission (PURC) has come under sharp criticism from Ghana’s Minority Caucus on the Energy Committee of Parliament, which has described the recent 3.49% electricity tariff hike for the third quarter of 2026 as an “unjustified political decision” lacking sound economic justification. The move, announced just one month after a 4.81% reduction in the second quarter, has raised concerns among lawmakers and industry stakeholders about the stability of Ghana’s energy pricing framework.
A Volatile Tariff Regime: Cumulative Increases and Economic Fallout
Since January 2025, PURC’s tariff adjustments have resulted in a cumulative increase of 26.82%—a trend that has left businesses, particularly Small and Medium Enterprises (SMEs), grappling with rising operational costs. Collins Adomako-Mensah, the Deputy Ranking Member of the Energy Committee and New Patriotic Party (NPP) Member of Parliament (MP) for Afigya Kwabre North, led the opposition to the latest hike during a press conference at Parliament House on June 22, 2026.
Adomako-Mensah argued that the justification for the Q3 hike—rooted in a 0.2% depreciation of the Ghana Cedi against the US Dollar and a 1.58% rise in natural gas costs—was flawed. He pointed out that economic indicators contradicted the commission’s claims, stating:
“The cedi has actually appreciated by nearly 40% against the dollar since January 2025. Interest rates have dropped from 27% to 23%, and while gas costs have indeed risen by 1.58%, this does not justify a tariff hike that disproportionately burdens consumers.”
Unchanged Power Generation Mix Raises Questions
The MP further questioned the stability of Ghana’s energy generation mix, noting that no significant changes occurred in power production between April and July 2026. This stability, he argued, undermined PURC’s rationale for the tariff adjustment, suggesting that the increase was more political than economic.
Impact on Industry and Cost of Living
Adomako-Mensah warned that the latest tariff hike would exacerbate the financial strain on Ghanaian businesses, particularly SMEs, which already face high operational costs. He highlighted that the NDC government’s promise of a 24-hour economy—intended to boost competitiveness and reduce living costs—had been undermined by successive tariff hikes.
“When the NDC campaigned on creating a 24-hour economy, Ghanaians expected reliable, affordable power to sustain industries and lower the cost of living. Instead, we are seeing a relentless assault on Ghana’s economic competitiveness through arbitrary tariff increases.”
Government Accountability Under Scrutiny
With Ghana no longer under an International Monetary Fund (IMF) Extended Credit Facility, Adomako-Mensah stressed that the government could no longer deflect blame for tariff decisions onto external lenders. He asserted that tariff adjustments were now a matter of domestic policy, with full responsibility resting on the NDC administration.
“This is not an IMF decision—this is a government decision. The power to adjust tariffs lies with policy direction, and the government must take full accountability for every cedi increase.”
A Warning of Social and Economic Consequences
In a stark warning, the MP cautioned that continuous tariff hikes without corresponding economic relief would deepen inequality, forcing ordinary Ghanaians to bear the brunt of policy failures.
“You cannot keep increasing pressure on the top while expecting the people of Ghana to carry the burden. This is not sustainable, and it will only worsen the cost of living crisis.”
Broader Implications for Ghana’s Energy Sector
The controversy underscores long-standing challenges in Ghana’s energy pricing mechanism, including transparency concerns, regulatory inconsistencies, and the need for a more predictable tariff framework. As businesses and consumers grapple with rising electricity costs, the debate over PURC’s decision-making process is likely to intensify, with calls for greater accountability and economic rationale in future tariff adjustments.
With Ghana’s economic recovery still fragile, the Minority Caucus’ criticism serves as a reminder that unjustified tariff hikes could derail progress, particularly for industries and households already struggling with inflation and high living costs. The PURC’s next moves will be closely watched as stakeholders demand clearer economic justifications for any future pricing decisions.