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Minority Demands Deeper Reductions in Utility Tariffs Amid Rising Costs
The Minority in Parliament has called for further cuts to electricity and water tariffs, arguing that the recent adjustments by the Public Utilities Regulatory Commission (PURC) are too small to provide significant relief for struggling households and businesses. Collins Adomako Mensah, Deputy Ranking Member of the Parliamentary Energy Committee, made the call in response to PURC’s announcement last week that electricity tariffs would drop by an average of 4.81% and water tariffs by 3.06%, effective April 1, 2026.
“While the Regulatory Commission has announced reductions in tariffs, we firmly believe that these cuts are insufficient. Ghanaian consumers deserve far better,” Mr. Mensah stated.
The Minority’s critique is based on an analysis of PURC’s quarterly data for 2025, which shows a consistent pattern of overestimating inflation and exchange rate projections, ultimately working against consumers. In the first and second quarters, the commission projected an inflation rate of 22.49%, while the actual rate averaged 20.3%, an over-projection of 2.19%. In the third quarter, PURC’s inflation forecast was 20.67%, but the actual figure was just 11%, an over-projection of 9.67%.
The Minority argues that these inflated projections have impacted tariff calculations, making the recent modest reductions insufficient to offset the financial strain Ghanaians face due to rising fuel and energy costs.
“The ongoing increases in fuel and energy prices are hitting households and businesses hard. A mere 5% reduction will not provide meaningful relief,” Mr. Mensah emphasized.
PURC’s tariff adjustments are part of its regular quarterly reviews to align utility prices with changes in exchange rates, inflation, and the operational costs of the energy sector. However, the Minority is calling on the government to consider more substantial cuts, suggesting reductions of up to 10% to offer real relief to consumers.
As the cost of living continues to rise, the debate over whether the recent tariff adjustments go far enough is expected to intensify in the coming weeks.
Story:Efua Nessa
Source:Loco tv