The Centre for Environmental and Sustainable Energy (CEMSE) has expressed deep concern over Ghana’s persistent cycle of utility tariff hikes and entrenched inefficiencies within the power sector, warning that the latest increase approved by the Public Utilities Regulatory Commission (PURC) will further strain already vulnerable households and businesses.
The PURC last week sanctioned a 9.86 percent upward adjustment in electricity tariffs for all consumer categories, effective in the first quarter of 2026. While the Commission argues that the review is necessary to sustain utility providers and attract much-needed investment into the sector, CEMSE says the decision exposes a recurring structural problem that places the financial burden disproportionately on ordinary Ghanaians.
According to the organisation, the impact of the tariff hike goes far beyond numbers on paper. Current expenditure patterns show that by the third quarter of 2025, the average Ghanaian household spends an estimated 15.1 percent of its monthly income on utilities such as electricity, water, gas, and housing—an increase from the 13.3 percent reported in the 2013 Ghana Living Standards Survey (GLSS 7).
CEMSE notes that although the poorest households spend a relatively smaller share—9.9 percent—of their total budget on electricity, the cost takes up a significant portion of their limited discretionary income. Low-income urban families, who rely heavily on electricity for lighting and refrigeration, are expected to cope by rationing consumption. This could involve cutting back on lighting, reducing the use of refrigerators, or limiting water usage, ultimately deepening energy poverty.
The Centre warns that such coping mechanisms may have far-reaching consequences, including reduced productivity, adverse health outcomes, and compromised education for children who are unable to study after dark.
CEMSE is therefore calling for a more comprehensive and equity-focused approach to tariff setting—one that addresses inefficiencies within the power sector, protects low-income consumers, and promotes long-term sustainability rather than repeatedly passing the financial burden onto households and firms. Read the article by CEMSE in full.