PURC Approves New Utility Tariffs: Electricity Up 9.86% and Water Up 15.92% Starting January 2026

The Public Utilities Regulatory Commission (PURC) has announced new utility tariff adjustments that will take effect from January 2026, increasing electricity tariffs by 9.86% and water tariffs by 15.92%. The decision forms part of the Commission’s quarterly tariff review mechanism aimed at ensuring cost recovery, operational sustainability, and improved service delivery across Ghana’s utility sectors.

In its announcement, the PURC explained that the adjustments were influenced by several key factors, including inflation trends, currency depreciation, rising fuel costs, and increased expenditure on utility infrastructure. These economic conditions, the Commission noted, continue to place pressure on utility providers such as the Ghana Water Company Limited (GWCL) and the Electricity Company of Ghana (ECG), making periodic adjustments necessary.

The Commission stated that although the increases may pose a challenge to consumers, they are essential to prevent service disruptions, improve electricity reliability, and expand water access in underserved communities. According to the PURC, failure to adjust tariffs when needed could result in significant financial distress for service providers, ultimately affecting national development.

The electricity tariff adjustment is expected to support grid modernization, transformer upgrades, prepayment meter expansion, and debt management initiatives. Utility companies have argued that without cost-reflective tariffs, key investment projects could stall, resulting in more frequent outages and slower maintenance response times.

For water services, the increment is meant to support the rehabilitation of treatment plants, replacement of aging pipelines, reduction of non-revenue water, and expansion of delivery systems to rural and peri-urban areas. The PURC acknowledged that Ghana faces persistent challenges in water distribution, and the revised tariffs aim to improve supply quality and reduce losses.

Public reactions to the announcement have been mixed. While some consumers understand the rationale behind the increases, others argue that the rising cost of living makes the increments difficult to bear. Civil society groups have called for greater transparency in how utility companies use the additional revenue.

The PURC responded by assuring the public that it will intensify monitoring to ensure efficiency, accountability, and value for money. The Commission also encouraged consumers to adopt energy-efficient practices and water conservation habits to manage their utility expenses effectively.

Economists have noted that tariff adjustments—while inconvenient—are a common feature of utility regulation worldwide. They stressed that aligning tariffs with economic realities helps maintain sector viability and attract investment. However, they emphasized the need for government and utility providers to communicate clearly with the public and provide support to vulnerable communities.

The PURC reiterated its commitment to balancing consumer protection with sector sustainability. It emphasized that the quarterly review process helps prevent sharp and unpredictable price shocks by ensuring gradual and data-driven adjustments.

As the new tariffs take effect in January 2026, households and businesses will need to adjust their budgets accordingly. The Commission assured the public that it remains committed to promoting fair pricing, improving utility efficiency, and ensuring continuous access to essential services nationwide.