PURC Announces 9.86% Increase in Electricity Tariffs, Water Tariffs up 15.92% From January 2026
The Public Utilities Regulatory Commission (PURC) has approved upward adjustments in electricity and water tariffs, effective January 1, 2026, following the completion of its 2026–2030 Multi-Year Tariff Review (MYTO).
In a statement, the Commission said the tariff decision is the outcome of months of investment hearings, stakeholder engagements and regional public consultations held nationwide as part of the statutory review process.
Electricity tariffs up 9.86%
The PURC announced that electricity tariffs for all consumer categories will rise by 9.86%. The Commission attributed the adjustment to the investment requirements of power utilities, projected generation inputs, and macroeconomic conditions such as inflation, exchange rate movements, and the cost of natural gas.
The five-year tariff determination also covered operational expenditure and the regulated asset base of utility companies. Quarterly tariff reviews will continue to apply to account for variables outside the utilities’ control, including fuel price volatility and changes in the generation mix.
Water tariffs increase by 15.92%
Water tariffs will see a 15.92% increase over the MYTO period. According to the PURC, the upward review was informed by projected production and sales volumes, non-revenue water levels, capital investment needs, and prevailing macroeconomic indicators.
Under the new structure, residential consumers will face higher charges across all consumption bands, while non-residential, commercial, industrial and public institutions will also experience tariff hikes. Service charges, however, remain largely unchanged.
The Commission noted that, for the first time, MYTO incorporates tariffs for mini-grids serving island and remote communities. The cost of supplying such areas at uniform national tariffs has been added to the Volta River Authority’s (VRA) revenue requirement to ensure seamless implementation.
Key drivers of the adjustments
The PURC cited several variables as central to the new tariff outlook. For the electricity sector, the Commission considered a projected generation mix comprising 78.79% thermal, 20.90% hydro and 0.31% renewables, alongside an increase in the Weighted Average Cost of Gas (WACoG) to US$7.8749/MMBtu.
Other determinants included improved loss-reduction targets for transmission and distribution utilities, an inflation assumption of 8%, and an exchange rate projection of GHS 12.01 to US$1.
For the water sector, the review factored in the expectation that non-revenue water will decline to 43% over the period, as well as updated production and sales forecasts.
The Commission maintains that the new tariffs are necessary to support long-term investments, enhance service delivery and sustain operations across the electricity and water value chains.
