The Public Utilities Regulatory Commission (PURC) has announced a reduction in electricity and water tariffs for consumers in Ghana, effective April 1, 2026, following its second-quarter tariff review.
According to the Commission, electricity tariffs will decrease by an average of 4.81 percent, while water tariffs will be reduced by 3.06 percent.
The adjustments form part of PURC’s quarterly tariff review mechanism, which allows the regulator to adjust prices periodically to reflect changes in key economic and operational factors affecting utility service providers.
Key Factors Behind the Review
The Commission said the review considered several variables that influence the cost of delivering electricity and water services. These include the exchange rate between the Ghana cedi and the US dollar, the domestic inflation rate, electricity generation mix, and the cost of fuel—particularly natural gas used in thermal power generation.
For the second quarter of 2026, PURC applied a projected weighted average exchange rate of GH¢11.1931 to US$1, based on the three-month interbank average between December 1, 2025, and February 28, 2026. This represents a 6.78 percent reduction from the previous quarter’s rate of GH¢12.0067 to the dollar.
The Commission also used a three-month average inflation rate of 4.17 percent for the same period, representing a significant downward revision compared with the previous quarter.
Energy Production Mix and Fuel Costs
Despite the tariff reductions, PURC noted that the weighted average cost of natural gas used for electricity generation rose slightly to US$8.0988 per MMBtu, reflecting a 2.85 percent increase from the previous rate.
Meanwhile, the hydro-thermal generation mix used for electricity production remains unchanged from the levels established in the 2025 Multi-Year Tariff Order, with hydro and thermal plants continuing to supply the national grid.
New Electric Vehicle Charging Tariff
In a move aimed at supporting Ghana’s energy transition, the Commission also announced the introduction of a commercial Electric Vehicle (EV) charging tariff for the first time.
PURC said the initiative forms part of efforts to promote green energy adoption and encourage investment in electric mobility infrastructure across the country.
Balancing Consumer Protection and Utility Sustainability
The Commission explained that quarterly tariff adjustments are necessary to maintain the real value of tariffs so that utility service providers remain financially viable while delivering reliable services to consumers.
At the same time, PURC said it remains mindful of the economic impact of tariffs on households and businesses and will continue to strike a balance between consumer protection and the sustainability of the utilities sector.