Director of Research and Corporate Affairs at the Public Utilities Regulatory Commission (PURC), Dr. Eric Kofi Obutey, has explained the reasons behind the recent electricity tariff increases starting from 1st July 2025 across all customer categories.
He said these tariffs are reviewed on a quarterly basis—carried out four times a year, every three months—by the PURC to help track progress, make adjustments, and plan effectively.
He outlined the main factors that influence the rise and fall of tariffs and explained how the review mechanism ensures that utility companies can recover their costs without overburdening consumers, thus balancing the financial viability of utilities with consumers’ affordability.
“Four factors are being used in carrying out tariffs; these include exchange rate, inflation, weighted average cost of gas, and hydro-thermal mix,” he explained on Friday, 27th June, on the Angel Morning Show (AMS).
Dr. Obutey further educated the public on how previous tariffs helped settle half of the country’s debt.
“The last tariff paid off half of GH¢9,076 million while the other half will be covered by the subsequent tariff regime, which is GH¢488 million.”
He elaborated that the tariff would have been relatively low if it only reflected the exchange rate between currencies and inflation. However, a debt component has been factored in, resulting in a substantial increase in the tariff.
“Tariffs would have been manageable if only accounted for the dollar and cedi fluctuations, but the added burden of a debt (¢488 million) has driven it up.”
Reflecting on the recent strengthening of the Ghanaian cedi, he said the nation can expect tariffs to drop significantly, assuming all other factors remain constant and no new variables are introduced.
