The Public Utilities Regulatory Commission (PURC) has defended the latest electricity tariff adjustments, insisting that maintaining reliable and uninterrupted power supply requires adequate funding across the country's energy value chain.
Speaking on the PM Express Business Edition, the Executive Secretary of the Commission acknowledged the burden higher electricity tariffs place on households and businesses but argued that the financial realities of power generation cannot be overlooked.
“Our responsibility is to strike the right balance between protecting consumers and ensuring that utility providers have the financial capacity to deliver reliable electricity,” he said.
The comments come ahead of the new tariff regime, which takes effect on July 1, amid growing concerns from manufacturers and commercial users over rising operating costs.
Businesses Prioritise Reliability Over Cheap Power
According to the PURC Executive Secretary, engagements with manufacturers in Tema and members of the international business community revealed that businesses value dependable electricity more than low tariffs.
He explained that frequent power interruptions often inflict greater financial damage than moderate tariff increases by disrupting production schedules, damaging machinery, forcing firms to rely on costly backup generators and affecting delivery timelines.
For exporters and manufacturers competing in international markets, he said, unreliable electricity can undermine productivity and weaken competitiveness.
“These costs must be considered when discussing electricity pricing because power sector stability depends on continuous investment in generation and fuel supply,” he noted.
The Commission disclosed that Ghana spends approximately 70 million US dollars each month on gas supplied under ENI's Sankofa project, while an additional 20 million US dollars is paid for gas imports through the West African Gas Pipeline and purchases from N-Gas.
Beyond natural gas, the country also procures crude oil and heavy fuel oil to support thermal power generation during periods of high electricity demand.
According to the regulator, these structural costs make cost-reflective tariffs necessary to prevent the accumulation of debt that could affect fuel procurement, payments to independent power producers and maintenance of generation infrastructure.
Revenue Collection Improving Amid Continued Oversight
Rejecting claims that tariff increases merely reward inefficiency, the Executive Secretary said the PURC has intensified regulatory oversight of the Electricity Company of Ghana (ECG), resulting in significant improvements in revenue collection.
He disclosed that ECG's monthly collections have increased from approximately GH¢800 million to between GH¢1.8 billion and GH¢2 billion following operational reforms.
However, he admitted that commercial losses, including illegal connections, meter tampering, unpaid bills and billing inefficiencies, continue to affect the financial health of the electricity sector.
The Commission said stronger monitoring will ensure utilities improve operational efficiency while implementing the new tariffs correctly.
The PURC also assured the public that more than 1.3 million lifeline electricity consumers will continue to benefit from subsidised tariffs despite the latest adjustments.
Regional offices of the Commission have been directed to investigate complaints relating to electricity bills and metering once the new rates take effect.
The regulator maintained that while affordable electricity remains important, sustainable pricing must be accompanied by reforms that improve efficiency, strengthen revenue collection and enhance customer service.
According to the Commission, building a financially stable and accountable power sector remains essential to ensuring that consumers receive reliable electricity without a return to prolonged supply disruptions.
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