Ghanaians will pay more for electricity and water services starting July 1, 2026. The Public Utilities Regulatory Commission (PURC) has approved new tariff adjustments. Electricity tariffs will increase by 3.49% across all customer categories. Water tariffs will also rise by 0.85%.
These adjustments are part of PURC's regular quarterly review process. The commission stated the increases are necessary to maintain the financial stability of utility service providers. This ensures the continuous provision of electricity and water services nationwide. The changes reflect movements in the Ghana cedi against the US dollar and domestic inflation rates.
This tariff hike fits into Ghana's ongoing economic landscape, which has seen fluctuating inflation and currency depreciation. Regular utility tariff reviews are a standard mechanism in Ghana. They help utility companies cover their operational costs in a changing economic environment. These reviews prevent service quality from declining due to financial pressures on providers. Data from the second quarter showed a three-month average inflation rate of 3.43%, down from 4.17% in the previous quarter. The Ghana cedi depreciated by 0.2% against the US dollar in the weighted average exchange rate, reaching GHS 11.2228 per dollar.
Dr. Shafic Suleman, Acting Executive of the PURC, confirmed these changes. He explained that the review considered several key economic factors. These include movements in the Ghana cedi against the US dollar and local inflation. The cost of natural gas used for power generation and the overall electricity generation mix were also factors. The weighted average cost of natural gas decreased by 1.58% to US$7.9708 per MMBtu. The hydro-thermal generation mix remained constant, with 20.9% from hydro sources and 79.1% from thermal generation.
Households and businesses should prepare for higher utility expenses starting next month. Decision-makers will monitor the impact of these tariff adjustments on consumer spending and business costs. The PURC has stated it will continue to oversee utility providers' operations. Its goal is to ensure compliance with standards and improve service quality for consumers. This quarterly review system aims to balance the financial health of utilities with consumer affordability concerns.
Under the revised structure, residential consumers on the lifeline tariff using up to 30 kilowatt-hours of electricity monthly will pay GHS 0.8993 per kilowatt-hour. This is an increase from GHS 0.869 previously. Lifeline water consumers, those using up to five cubic metres monthly, will now pay GHS 5.9854 per cubic metre. This is up from the prior rate of GHS 5.9349. Importantly, service charges for all customer categories will remain unchanged. These adjustments highlight the continuous effort to adapt utility pricing to prevailing economic realities while trying to minimise impacts on vulnerable consumers.