Why Ghanaians face higher electricity and water tariffs – Labour expert explains

The Secretary-General of the Ghana Federation of Labour (GFL), Abraham Koomson, has attributed the recent hikes in utility tariffs to inefficiencies and revenue leakages within the Electricity Company of Ghana (ECG).

According to him, research indicates that about 35% of electricity consumers do not pay for the power they use.

This, he argued, forces the Public Utilities Regulatory Commission (PURC) to adjust tariffs upward periodically to cover losses.

Speaking on Ahotor FM and monitored by GhanaWeb Business, Koomson warned that these inefficiencies threaten Ghana’s industrial growth, as manufacturing companies are already struggling with high production costs.

“Our research reveals that about 35 percent of electricity consumers are not paying, and other inefficiencies at ECG account for the tariff adjustments,” he stated.

He added that, “This situation threatens industrial growth, as manufacturing industries are already overburdened with high production costs.”

'We have serious issues with new taxes and levies being contemplated' – GFL to govt

Koomson therefore urged government and regulators to tackle ECG’s operational challenges and revenue leakages to ease the burden on consumers and businesses.

Beginning Wednesday, July 1, 2026, Ghanaians will pay more for electricity and water following PURC’s latest quarterly review.

The Commission has increased electricity tariffs by 3.49 per cent across all customer categories and water tariffs by 0.85 per cent as part of its quarterly tariff review process.

The PURC said the increases were necessary to maintain the financial viability of service providers and ensure the continued delivery of electricity and water services.

A statement issued and signed by Dr Shafic Suleman, Acting Executive of the Commission, said the review took into account movements in the Ghana cedi against the US dollar, inflation, the cost of natural gas used in power generation and the electricity generation mix.

It explained that the quarterly review mechanism was designed to preserve the real value of tariffs in the face of changing economic conditions while minimising the impact on consumers.

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