Electricity and water consumers across Ghana are set to benefit from reduced utility costs, following the implementation of new tariff cuts by the Public Utilities Regulatory Commission (PURC), effective today, April 1, 2026.
The Commission, in its latest quarterly tariff review announced in March, reduced electricity tariffs by 4.81 percent, while water tariffs have been cut by 3.06 percent for the second quarter of the year.
According to the PURC, the adjustments are in line with its statutory mandate to review utility tariffs quarterly, ensuring they reflect prevailing economic and operational conditions within the sector.
The Commission explained that the quarterly reviews take into account key variables that significantly impact the operations of Utility Service Providers (USPs). These include movements in the exchange rate between the Ghana cedi and the US dollar, domestic inflation, the electricity generation mix, and the cost of fuel—particularly natural gas used in thermal power generation.
The PURC noted that the adjustments are aimed at maintaining the real value of tariffs to ensure the financial sustainability of utility providers, while also considering affordability for consumers.
In determining the new tariffs, the Commission applied a projected weighted average exchange rate of GHS11.1931 to US$1.00 for the second quarter of 2026. This reflects a 6.78 percent reduction from the previous quarter’s rate of GHS12.0067 to US$1.00, based on inter-bank exchange rate data from December 1, 2025, to February 28, 2026.
On inflation, the Commission used a three-month average rate of 4.17 percent for the same period, representing a significant decline of 47.87 percent compared to the previous quarter.
However, the cost of natural gas saw a marginal increase. The weighted average cost of gas (WACOG) was set at USD8.0988 per MMBtu, marking a 2.84 percent rise from the earlier rate of USD7.8749 per MMBtu.
Meanwhile, the electricity generation mix remained unchanged, with hydro power accounting for 20.90 percent and thermal sources contributing 79.10 percent, consistent with projections under the 2025 Multi-Year Tariff Order (MYTO).
The PURC reiterated its commitment to balancing the financial viability of service providers with the need to protect consumers, as it continues to monitor economic trends and sector performance.