Minority says PURC utility cuts too small, urges deeper reductions for consumers

The Minority in Parliament has called for further reductions in electricity and water tariffs, arguing that the recent adjustments by the Public Utilities Regulatory Commission (PURC) are insufficient to ease the financial burden on households and businesses.

Deputy Ranking Member of Parliament’s Energy Committee, Collins Adomako Mensah, made the comments while responding to PURC’s announcement last week that electricity tariffs would fall by an average of 4.81 per cent and water tariffs by 3.06 per cent, effective April 1, 2026.

“The Regulatory Commission announced reductions in electricity and water tariffs, but we say plainly this reduction is insufficient and Ghanaian consumers deserve far better,” Collins Adomako Mensah said.

He added that the Minority’s analysis of PURC’s own quarterly data for 2025 shows a consistent pattern of overestimation in both inflation and exchange rate projections, which ultimately worked against consumers.

“In quarter one and quarter two, the commission projected an inflation rate of 22.49 per cent against an actual average of 20.3 per cent, an over-projection of 2.19 points. In quarter three, the projection was 20.67 per cent when the actual figure was 11 per cent — an over-projection of 9.67 points,” he noted.

The Minority argues that these over-projections have influenced tariff calculations, making the modest reductions announced last week inadequate to relieve the pressures Ghanaians face from rising fuel and energy costs.

“The ongoing increases in fuel and energy costs are squeezing households and businesses from multiple fronts. A mere 5 per cent reduction does not go far enough,” he said.

PURC’s tariff adjustments were part of routine quarterly revisions aimed at reflecting changes in exchange rates, inflation, and operational costs in the energy sector. However, the Minority is pressing the government to consider deeper cuts, suggesting reductions of up to 10 per cent to provide meaningful relief.

As consumers continue to grapple with rising cost-of-living pressures, the debate over the adequacy of utility tariff adjustments is likely to intensify in the coming weeks.

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