The Public Utilities Regulatory Commission (PURC) has launched public consultations on the Multi-Year Tariff Order (MYTO) for the 2025–2030 period, as key electricity and water providers advocate for substantial tariff increases to sustain operations and improve service delivery.
At a stakeholder engagement held in Accra, PURC Executive Secretary, Shafic Suleman, emphasized the critical role of government communication officers and the media in shaping public understanding of the tariff-setting process.
He described the MYTO as a “Citizens’ MYTO” — one that must reflect the aspirations of Ghanaians, while also ensuring the financial viability of utilities and protecting consumer interests.
> “The MYTO is designed to provide predictability for utilities, stability for consumers, and confidence for investors. But above all, it belongs to the people of Ghana,” Mr. Suleman stated.
### Utilities Request Significant Tariff Increases
Three major utility providers — the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo), and Ghana Water Limited (GWL) — have submitted proposals seeking average tariff increases of up to 690 percent, citing severe financial constraints and the need to guarantee uninterrupted service.
**ECG** is proposing a 239 percent increase in 2025, aiming to raise its Distribution Service Charge from 19.08Gp/kWh to 61.80Gp/kWh. The company argues that cost-reflective tariffs are essential to address system losses, curb illegal connections, and mitigate the impact of foreign exchange fluctuations.
**NEDCo**, which serves the five northern regions and parts of the Oti Region, is requesting a 171 percent hike. It has called for the elimination of the lifeline tariff band, deeming it financially unsustainable, and has proposed the introduction of a dedicated tariff to fund public lighting.
**GWL** is seeking a 280 percent increase, citing the urgent need to repay loans, rehabilitate aging infrastructure, and manage the impact of polluted water sources. The company’s proposal includes over GH¢447 million in planned expenditure, as well as foreign currency obligations amounting to US\$1.5 million and €8.5 million.
Other utility providers — including the Volta River Authority (VRA), Ghana Grid Company (GRIDCo), Ghana National Gas Company (GNGC), and Enclave Power Company (EPC) — have also submitted tariff review proposals.
Notably, **GRIDCo** is seeking to more than double its transmission tariff from 5.64Gp/kWh to 12.97Gp/kWh in 2025, representing a 130 percent increase, to ensure reliable operation of the national grid.
### Broader Sector Challenges
Chair of the Utility Review Hearing Committee and Presidential Staffer, Nana Yaa Jantuah, raised environmental concerns during the session, warning that illegal mining activities (galamsey) are exacerbating the country’s water challenges.
> “If galamsey is not curbed, the country may soon be compelled to import water,” she cautioned, calling for urgent national support to protect Ghana’s water bodies.
### Public Participation and Next Steps
The PURC announced plans to hold regional public hearings in the coming weeks, providing a platform for consumers to engage directly with utility companies and seek clarification on the proposed tariff adjustments.
While utility companies argue that the proposed increases are essential for maintaining service quality and infrastructure development, the PURC has reiterated that all final decisions will be based on a careful balance between affordability for consumers and operational sustainability for service providers.
> “We urge the commission and all stakeholders to consider this proposal favourably,” said Moses Okley, General Manager in charge of Financial Planning at ECG.
Source: theghanareport.com
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