Ghana’s Public Utilities Regulatory Commission (PURC) has approved a 9.86% increase in the electricity tariff and a 15.92% increase in the water tariff, effective January 1, 2026, under its new Multi-Year Tariff Order (MYTO).
The 2026–2030 MYTO introduces the integration of mini-grids into the national tariff framework, potentially expanding universal access to electricity in island and lakeside communities.
The increase was necessary to align tariffs with the investment needs of the struggling Volta River Authority (VRA), Electricity Company of Ghana (ECG), Ghana Water Company Limited (GWCL), and other struggling utilities.
The Commission evaluated each utility’s regulated asset base to determine the capital expenditure required for asset maintenance and new grids between 2026 and 2030, ensuring providers can maintain infrastructure and improve service reliability.
Thermal power will also climb to 78.79% from 70.75%, while hydro drops to 20.90% from 28.80% due to variable rainfall, pushing generation expenses up, as more expensive fuel would be needed.
Exchange rate volatilities usually hit imported fuel/parts hardest. With inflation now pegged at 8% and cedi at GHS 12.0067 to $1, compared to the 2025 baseline of 12.43% inflation and credit at GHS 12.3715 to $1, gas costs have jumped from $7.71/MMBtu to $7.87/MMBtu via Weighted Average Cost of Gas (WACOG).
MYTO is conducted every three to five years by the PURC and often considers both capital expenditure and operational expenditure. It was last conducted in September 2022, but the PURC also conducts quarterly Tariff reviews of short-term OPEX elements that are beyond the control of service providers.
The Commission reminded customers that this MYTO review is separate from the quarterly OPEX review, and more quarterly adjustments are to be expected.
The MYTO also incorporates policy reforms, including integrating mini-grids into national tariffs to support universal electricity access.
The tariff review is part of IMF-backed reforms to cut subsidies and stabilise the sector which has been embroiled in a crisis.
Notwithstanding PURC’s justification, many consumers and civil society groups have voiced strong opposition to the increases.
According to reports from Ghana Webbers, residents at public hearings argued that higher tariffs would worsen the cost of living and disproportionately affect low-income households.
Price hikes hit harder in low/middle-income households, where bills already eat a large proportion of their budgets, while as residential rates rise across bands, low income households will suffer more disproportionately.