The Public Utilities Regulatory Commission (PURC) has indicated that reversing the recently announced utility tariff increases for the third quarter of 2026 would be extremely difficult, citing the financial challenges confronting Ghana’s power sector.

The Executive Secretary of the PURC, Dr. Shafic Suleman, said the tariff adjustments are essential to sustaining electricity supply, financing fuel for power generation, and ensuring the financial viability of electricity producers and distribution companies.

Speaking in an interview, Dr. Suleman explained that the power sector continues to grapple with significant debt, making periodic tariff reviews necessary to maintain operations.

According to him, stakeholders must adopt innovative approaches to address the sector’s financial difficulties while ensuring uninterrupted power supply.

“The utility companies are still not breaking even even with the current tariff levels. That is why government has to step in every month to cover the shortfall,” he said.

The PURC announced on June 22, 2026, an upward adjustment in utility tariffs, increasing electricity tariffs by 3.49 percent and water tariffs by 0.85 percent. The new rates are expected to take effect from July 1, 2026.

In its announcement, the Commission explained that the adjustments form part of its quarterly tariff review mechanism, which considers changes in key economic and operational indicators, including inflation, the exchange rate between the Ghana cedi and the US dollar, electricity generation mix, and fuel costs, particularly natural gas used in thermal power generation.

Dr. Suleman dismissed suggestions that the Commission had adopted a new pricing formula, stressing that the methodology remains largely unchanged.

“The only difference now is that we have factored in some forward-looking indicators such as inflation and the cedi’s performance to ensure we are not overtaken by events, especially regarding exchange rate movements,” he explained.

He further noted that the Commission has intensified regulatory measures to reduce distribution and commercial losses within the power sector while pursuing full cost recovery.

“We have done our best as a regulator to put in place the necessary pressure on power distributors and producers to address distribution and commercial losses as we work towards achieving full cost recovery for the sector,” he stated.

The tariff increases have, however, attracted criticism from sections of the business community, with many expressing concern over the impact on production costs and the general cost of doing business.

Responding to the concerns, Dr. Suleman warned that delaying or reversing the tariff adjustments could have serious consequences for the power sector.

He argued that without periodic reviews, utility providers would struggle to meet operational costs, potentially affecting the reliability of electricity supply.

On complaints about intermittent power outages in some parts of the country, the PURC Executive Secretary said significant improvements have been made in recent weeks.

He attributed many of the earlier disruptions to transformer upgrade works, adding that most of the installations have now been completed.

“Most of the outages were caused by transformer upgrades, and now that most of them have been fixed, I think the situation has normalised,” Dr. Suleman said.

The PURC maintains that while the tariff adjustments may be unpopular, they remain necessary to safeguard the long-term sustainability of Ghana’s utility sector and ensure the continued delivery of reliable electricity and water services.