The Trades Union Congress (TUC) is warning that it will call a nationwide strike if the government does not step in to stop or adjust the new utility tariff increases that the Public Utilities Regulatory Commission (PURC) is planning to implement.
In a statement signed by Secretary-General Joshua Ansah on Wednesday, December 3, the TUC argued that the 9% wage adjustment for 2026 is not enough to cushion workers against a 9.86% increase in electricity and a 15.92% rise in water tariffs set to take effect on January 1, 2026.
“Workers cannot accept these increases unless the government comes back to the negotiating table to top up the wage increase for 2026. Anything short of that, the TUC will mobilise workers to resist the implementation of these insensitive increases in utility prices.”
The union further described the tariff adjustments as an unpleasant “New Year’s gift,” deliberately targeting the 9% increase in the national minimum wage and base pay, an increment it is still finding difficult to accept due to the additional financial strain it will place on workers.
Effective January 1, 2026, Ghanaians will pay more for water and electricity consumed following new tariff adjustments by the Public Utilities Regulatory Commission (PURC).
As part of PURC’s multi-year tariff review process covering 2026 to 2030, electricity tariffs have been adjusted by 9.86 percent, while water tariffs have been increased by 15.92 percent.
Justifying the increases, the Public Utilities Regulatory Commission cited the investment requirements of utility providers, the need to ensure industry competitiveness, and the necessity of safeguarding consumer interests. PURC also attributed the cedi–dollar exchange rate, domestic inflation, the electricity generation mix, and rising fuel prices especially natural gas.
In October, electricity tariffs for all consumer categories increased by 1.14 per cent. However, water tariffs saw no increase for the same period.
According to a press statement by Acting Executive Secretary Shafic Suleman, the Commission indicated that the adjustment has become necessary due to factors such as the Ghana cedi–US dollar exchange rate, domestic inflation, the electricity generation mix, and fuel prices, especially natural gas.
The review was in line with the Commission’s Quarterly Tariff Review Mechanism, which tracks key economic factors that affect the cost of delivering utility services.
The PURC notes that the incoming hike will maintain the real value of tariffs and keep service providers financially stable. The Commission stated that it didn’t fully recover some costs in the previous quarter (Q3) due to currency changes and other factors.
It added that it was short of 0.3980 GHS per US$1 in the third quarter; as such, it added this shortfall into the new tariff. Earlier in September this year, the Public Utilities Regulatory Commission (PURC) received proposals from eight utility companies calling for a significant adjustment in utility tariffs to ensure they can fully operate at their capacities.
Proposals from the electricity distributors and the water provider for the 2025–2029 tariff period cited rising operational costs and the need to maintain efficient service delivery.
The eight companies include the Electricity Company of Ghana (ECG), Volta River Authority (VRA), Northern Electricity Distribution Company (NEDCo), Ghana Water Limited (GWL), the Ghana Grid Company (GRIDCo), Ghana National Gas Limited, among others.
ECG pushed for a massive 225% hike in its distribution service charge. For instance, a household consuming 150 kWh monthly would pay an additional GHS64, while a residence using 100 kWh per month would pay about GHS43 more in distribution charges.
As part of ECG’s request, the current Distribution Service Charge (DSC) of 19 pesewas per kilowatt-hour should be raised to nearly 62 pesewas per kilowatt-hour.
“The PURC will undertake the major adjustment in the 4th quarter of 2025 to reflect capacity charges, additional liquid fuel usage, and additional capex. The current charge is below industry benchmarks, and cedi depreciation has reduced its value. US$408m spent on network upgrades and smart meters,” parts of ECG’s petition read.
ECG has emphasised that the adjustment has long been overdue, noting that in 2022 it proposed 39.95 pesewas, but only 19.04 pesewas was approved.
According to ECG, it has invested $48 million in network upgrades and smart metering systems to enhance power reliability, reduce outages, and align tariffs with international industry standards, yet these efforts have not yielded the expected cost recovery.
Furthermore, ECG has projected an annual revenue of GHS9.5 billion between 2025 and 2029 if the new charges are approved. The proceeds, according to the utility company, would be allocated to cover operational costs, depreciation of assets, staff salaries, and the recovery of recent capital expenditures.
VRA sought a 59% increase to cover rising costs of producing electricity. If approved, the current tariff of 45.0892 Ghana pesewas per kilowatt-hour will be increased to 71.8862 pesewas per kilowatt-hour for the Bulk Generation Charge.
Speaking during a public hearing on Tuesday, September 9, Senior Economic Analyst at VRA, Evans Somuah Mensah, said, “Over the years, VRA has not been compensated for doing this work to assist the national connectivity system. We are saying that on an annual basis, VRA should be given compensation $30.49 million for Akosombo power generation, and Kpone Thermal plant, a little bit of $30,000.
“Justification for tariff increase, we are saying that we want to recover the cost of our power supply to the distribution companies, and recover the cost of transmission and also be compensated for the provisions of ancillary services. We are requesting the PURC to increase the existing tariff of BGC from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 Ghana pesewas per kilowatt-hour.”
VRA has justified the increase as necessary to fully recover the cost of power generation supplied to distribution companies (DISCOs). It has noted that sustaining reliable electricity generation and meeting its operational and financial obligations will become increasingly difficult if its proposal is rejected.
Ghana Water Limited has proposed a jump from GH¢5.28 per cubic metre to GH¢20.09 per cubic metre, seeking regulatory approval for a 281% increase in its water tariff.
NEDCo has also called for its tariff to be increased to 153.03 pesewas per kilowatt-hour from the current 56.474 pesewas, representing a 171% rise. GRIDCo, meanwhile, is demanding that the current 5.6422 pesewas per kilowatt-hour on its transmission service tariff be raised to 12.9768 pesewas per kilowatt-hour.
Ghana National Gas Limited is proposing to increase its tariff from US$1.10 to US$2.10 per million metric British thermal units (MMBtu). However, the onus lies on PURC to carefully review the requests, assess whether the increases are justified, and determine how the costs will be distributed.
In July this year, electricity tariffs increased by 2.45% across the board, with no increase in water tariffs.
The adjustments, according to PURC, were carried out in line with the Commission’s Quarterly Tariff Review Mechanism, which tracks and incorporates movements in key factors beyond the control of Utility Service Providers (USPs).
These factors include the exchange rate between the US dollar and the Ghana cedi, the domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.
According to the Commission, additional factors considered before concluding the hike in tariffs include outstanding debt of GHS488 million carried over from the previous three quarters, reserve capacity for grid stability and reliability, and the inclusion of 27% of the cost of alternative fuels such as Distillate Fuel Oil (DFO), Heavy Fuel Oil (HFO), and Light Crude Oil (LCO).
