PURC Announces Major Tariff Adjustments for Electricity, Water, and Natural Gas from January 2026

The Public Utilities Regulatory Commission (PURC) has released its major tariff review decision for electricity, natural gas, and water for the period 2026–2030, marking the beginning of a new Multi-Year Tariff Review Order (MYTO). The announcement, dated 2nd December 2025, outlines significant adjustments to ensure utility providers remain financially viable while safeguarding consumer interests.

Electricity Tariffs to Increase by 9.86%

After a comprehensive evaluation of utility investment needs, operational costs, and broader economic indicators, the Commission approved a 9.86% increase in electricity tariffs across all consumer categories. This adjustment takes effect on January 1, 2026, and is intended to support long-term investments in the power sector while maintaining stable electricity supply.

The PURC highlighted that the review aligns with its MYTO framework, which typically spans three to five years. These major reviews differ from quarterly adjustments, which only account for uncontrollable factors such as inflation, exchange rate fluctuations, fuel costs, and natural gas pricing.

Water Tariffs to See a Significant 15.92% Upward Adjustment

Consumers will also experience changes in water tariffs, with a 15.92% increase approved for the 2026–2030 tariff control period. The Commission explained that the adjustment was necessary to improve water infrastructure, support operational expenses, and ensure reliable service delivery nationwide.

Factors Influencing the Tariff Decisions

The Commission considered several major elements before finalizing the tariffs:

• Regulated Asset Base Review: Utilities’ assets were evaluated to determine the required investments from 2026 to 2030.
• Quarterly Flexibility: Future quarterly reviews will continue for factors outside utility control, such as inflation and foreign exchange movements.
• Generation Mix: Costs associated with hydro, thermal, and renewable energy generation were included.
• Policy Additions: Initiatives like the integration of mini-grids to promote universal electricity access were incorporated into the decision-making process.

Introduction of Mini-Grid Tariffs

One notable reform in this review is the inclusion of mini-grid tariffs. The Commission emphasized that electricity supplied to island and remote communities through mini-grids must be priced uniformly with the standard electricity tariffs enjoyed by consumers on the national grid. To support this, the Volta River Authority (VRA) will account for the associated revenue requirements to ensure seamless implementation.

Detailed Breakdown for the 2026–2030 Period

The document also contains tables illustrating proposed and approved MYTO figures for generation sources such as thermal, hydro, and renewables. These figures reflect anticipated energy production volumes and their impact on tariff calculations.

This major tariff review marks a critical step in stabilizing Ghana’s utility sector for the next five years. While consumers will face upward adjustments, the PURC assures the public that these changes are necessary to maintain reliable services, support infrastructure upgrades, and ensure long-term sustainability within the power and water sectors.