Consumers shouldn’t pay for utility inefficiencies – ICEG criticises latest PURC tariff order

Consumers shouldn't pay for utility inefficiencies - ICEG criticises latest PURC tariff order

Institute of Climate and Environmental Governance (ICEG)has warned that the recent tariff hikes approved by the Public Utilities Regulatory Commission (PURC) will unfairly burden ordinary Ghanaians, “leaving consumers in the dark” instead of easing their plight.

The Institute of Climate and Environmental Governance (ICEG), in a statement dated Wednesday, December 3, 2025, strongly criticised the regulator’s decision to increase electricity tariffs by 9.86% and water tariffs by 15.92%, effective January 1, 2026.

ICEG argues that the adjustments, outlined in the 2025–2030 Major Multi-year Tariff Review Order (MTTO), fail to protect consumers, especially low-income households, at a time of high inflation and reduced purchasing power.

“The interest of consumers is certainly not protected with such an increase,” the statement said, signed by Policy Lead Kwesi Yamoah Abaidoo.

“The upward adjustment suggests lifeline consumers will have to pay more for the same amount of electricity consumed. This defeats the tenets of fairness.”

The group acknowledges PURC’s mandate but insists the commission must prioritise shielding Ghanaians from unfair charges.

It calls for a better balance between the financial needs of utility companies and the current socio-economic realities facing citizens.

A major point of contention is the perceived lack of pressure on utility providers to improve efficiency.

ICEG contends that consumers should not be made to consistently pay for systemic inefficiencies and high transmission losses.

“Value-for-money should be a core basis upon which tariff adjustment should be premised,” the institute stated.

ICEG highlighted that the new tariff structure does not protect consumers from the frequent upward quarterly adjustments, which are triggered by fluctuations in exchange rates and inflation.

They argue this creates uncertainty and makes financial planning difficult for households and businesses.

The criticism comes amid ongoing public concern about the cost of living. The PURC’s tariff announcement has been a subject of debate, with utility companies arguing for cost recovery while consumer advocates demand relief.

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *