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Energy Ministry says PURC’s 9% tariff increase needed to protect utilities and fund power investments

Tue, Dec 9 2025 9:09 AM
in Ghana General News, News
energy ministry says purcs 9 tariff increase needed to protect utilities and fund power investments
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Energy Ministry’s spokesperson, Richmond Rockson

The Ministry of Energy and Green Transition has defended the Public Utilities Regulatory Commission’s (PURC) decision to increase electricity tariffs by 9% effective January 2026, following concerns raised by the Trades Union Congress (TUC).

Speaking on Joy FM’s Top Story on Monday, December 8, the Ministry’s spokesperson, Richmond Rockson, acknowledged that tariff adjustments are rarely welcomed but insisted the latest increment is necessary to safeguard the financial health of utility providers and sustain critical infrastructure investments.

“Generally, taxes, levies, and tariff adjustments are met with pushback, so, understandably, TUC will raise concerns. However, PURC’s decision is essential to meet the capital and investment needs of utilities, support their asset base, and fund infrastructure projects over the coming years,” Mr Rockson explained.

He noted that the current 9% increase is significantly lower than the previous major adjustment of more than 27%, crediting the reduction to reforms championed by Energy Minister Hon. John Jinapor and the broader economic rebound.

The Ministry highlighted ongoing interventions, including improved ECG revenue collection, strict compliance with the Cash Flow Waterfall Mechanism, timely payments to Independent Power Producers (IPPs), and enhanced transparency in procurement.

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Mr Rockson stressed that maintaining investment in capital expenditure is vital to sustaining the recent stability in the power sector, reducing technical and commercial losses, and keeping pace with rising electricity demand.

“Sustained investment in capital expenditure is crucial if we are to maintain this stability and ensure reliable power for all Ghanaians,” he said.

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