The Ministry of Energy and Green Transition has defended the Public Utilities Regulatory Commission’s (PURC) decision to approve a 9% increase in electricity tariffs effective January 2026, describing it as a necessary step to preserve recent gains in the power sector.
Responding to concerns raised by the Trades Union Congress (TUC) and the Minority in Parliament, the Ministry’s Spokesperson, Richmond Rockson, Esq., said the adjustment must be assessed within the broader context of far-reaching reforms that have significantly improved the sector’s financial health.
He noted that the current 9% increase stands in sharp contrast to the previous increment of more than 27%, a reduction he attributes to deliberate reforms instituted by the government.
“If you compare the current 9% increase to the last increment, which was over 27%, it clearly reflects the impact of the reforms championed by the government, led by the Energy Minister, Hon. John Jinapor. These reforms, together with the rebound of the economy and emerging positive indicators, have lowered the burden that typically forces higher tariff adjustments,” he said.
Acknowledging the concerns of organized labour, Mr. Rockson said resistance to tariff adjustments is understandable, but warned that delaying necessary corrections could undermine the long-term stability of the power sector.
“Generally, payment of taxes, levies, as well as tariff increases, are met with pushbacks, so it is understandable that TUC will raise these concerns. However, PURC’s decision to increase tariffs from January 1 is a necessary measure to address financial needs, largely capital and investment requirements of utilities, the asset base, and planned infrastructure investments over the next several years.”
According to him, since January 2025, government interventions since January 2025 have begun producing tangible improvements across the power sector. Mr. Rockson cited improved revenue mobilization by the Electricity Company of Ghana (ECG), enhanced adherence to the Cash Flow Waterfall Mechanism, and more timely payments to Independent Power Producers (IPPs) as key milestones.
“Since the government’s takeover, significant reforms, including the improved Cash Waterfall Mechanism, have enhanced the financial health of the utilities, ensuring that ECG stays current with IPP payments and that power supply remains stable.”
The spokesperson cautioned that sustaining recent progress will require continued investment in electricity infrastructure, warning that without adequate funding, sector gains could quickly erode.
“While these reforms have stabilized the system, continued investment in infrastructure is crucial to sustain this stability and meet growing national demand,” Mr. Rockson said.
The Ministry maintains that the measured tariff increase is not only aimed at safeguarding utility providers but also at enabling them to pursue critical investments needed to strengthen the sector in the medium to long term.
