CUTS Worldwide Accra and the Middle for Environmental Administration and Sustainable Power (CEMSME) are urging the Public Utilities Regulatory Fee (PURC) to start stakeholder consultations to cut back electrical energy tariffs for the third quarter of 2025.
This name is pushed by substantial enhancements in macroeconomic circumstances and declining electrical energy enter prices, which the organizations argue ought to result in decrease tariffs for Ghanaian shoppers within the subsequent window.
In a joint assertion, West Africa Regional Director for CUTS Worldwide and Benjamin Nsiah, Govt Director of CEMSME, outlined the favorable shifts in key tariff-determining components. The Ghana Cedi has appreciated by roughly 18 per cent towards the US greenback, shifting from GHS15.70 to GHS12.93 within the second quarter, with the chance of additional appreciation earlier than the start of the third quarter.
Inflation has additionally dropped to 21.2 per cent from the 22.49 per cent used to set tariffs for the primary and second quarters, with the chance of additional discount by June, 2025. Though pure gasoline costs are projected to rise to USD4.20/MMBTU within the third quarter, as per the Power Data Administration and the federal government subsidies on WACOG by about USD0.83/MMBTU, the stronger Cedi is predicted to offset its influence on end-user tariffs.
Moreover, the share of hydropower in electrical energy technology could enhance above 30%, probably decreasing prices additional.
“These optimistic macroeconomic indicators present a powerful case for tariff discount,” stated Adomako.
“Decrease electrical energy tariffs would alleviate monetary pressures on households, cut back manufacturing prices for industries, and assist curb inflation, fostering long-term shopper welfare.”
The assertion emphasised the PURC’s authorized mandate beneath the Public Utilities Regulatory Fee Act 1997 (Act 538), Part 16(3)(a), to guard shopper pursuits. “The Fee should act transparently and have interaction stakeholders to make sure Ghanaians reap the advantages of those financial features.”
The PURC is required to evaluate electrical energy and water tariffs quarterly, reflecting adjustments in macroeconomic components like trade charges and inflation, in addition to market-driven operational prices of utility service suppliers such because the Electrical energy Firm of Ghana (ECG).
These components, past the management of suppliers, instantly affect shopper tariffs. The organizations confused that the Cedi’s appreciation ought to translate into tangible reduction for shoppers. For industries, diminished tariffs would decrease manufacturing prices, probably stabilizing costs and boosting financial development.
CUTS Worldwide Accra and CEMSME additionally referred to as for higher transparency and shopper engagement within the tariff evaluate course of. They expressed concern over ECG’s inefficiencies, together with business and technical losses, which unfairly burden shoppers.
“PURC should handle ECG’s administration challenges and hyperlink future tariff evaluations to institutional reforms that improve effectivity and repair supply,” Nsiah acknowledged.
The organizations urged PURC to deepen stakeholder engagement to make sure the evaluate course of is inclusive and prioritizes shopper pursuits.
The organizations additional famous that tariff reductions may have broader financial advantages. By easing the price burden on companies, decrease electrical energy costs may stimulate industrial development, create jobs, and enhance Ghana’s competitiveness within the area.
They referred to as on PURC to behave proactively, leveraging the present financial local weather to ship reduction to each residential and business shoppers.
Background
On April 11, 2025, PURC introduced a 6.52% electrical energy tariff enhance efficient Might 1, 2025, based mostly on a projected trade price of GHS15.6974/USD, an inflation price of twenty-two.49%, and a Weighted Common Price of Fuel of US$7.6289/MMBtu.
The choice included 50% of excellent income arrears from 2024, totaling GHS488.42 million, leading to a cumulative 14.75% tariff hike for the primary and second quarters of 2025. Given the present financial enhancements, CUTS Worldwide Accra and CEMSME urge PURC to reverse this development and prioritize shopper reduction by way of a downward tariff adjustment.
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