Electricity tariff increases by 9.86%, water by 15.92% effective January 1, 2026
Effective January 1, 2026, consumers of both electricity and water will face tariff increases.
This change follows the recent tariff approval by the Public Utilities Regulatory Commission (PURC), which will result in a 9.86 per cent rise in electricity rates and a 15.92 per cent increase in water rates for all customers.
The announcement was made on Tuesday, December 2, 2025, after the completion of the significant Multi-Year Tariff Review Order (MYTO) processes for the period spanning 2026 to 2030.
A statement released on Tuesday evening [Dec 2, 2025] and signed by the new Executive Secretary of PURC, Dr. Shafic Suleman, clarified that the review was conducted in accordance with sections 3, 16, 17, 18, 20, and 21 of the PURC Act, 1997 (Act 538).
“The Public Utilities Regulatory Commission wishes to inform consumers of electricity and water that, after going through the major Multi-year Tariff Review Order (MYTO) processes for the period 2026 to 2030, there has been a review of the existing tariffs effective January 01, 2026.
“These reviews have been carried out in line with sections 3, 16, 17, 18, 20 and 21 of the PURC Act, 1997, Act 538. This major review is consistent with the Commission’s MYTO regime, which ranges between 3-5 years,” he said.
Dr. Suleman pointed out that the last significant review, which took into account both capital expenditure (CAPEX) and operational expenditure (OPEX), was conducted in September 2022 and was scheduled for review in 2025.
He clarified that this review is distinct from the quarterly reviews, which only address operational expenses that are beyond the control of the service providers.
He indicated that in conducting this major review, the Commission took into consideration the investment needs of the utilities, the competitiveness of industries, and the overall living conditions of consumers.
“Having considered all the underlying factors, the Commission wishes to announce that there will be a 9.86 per cent increase in electricity tariffs across the board for all categories of electricity customers. Water tariffs for all customer classes, on the other hand, will experience an upward review of 15.92 per cent over the tariff control period (2026-2030),” he said.
He mentioned that the recent tariff modifications were sanctioned after the investment hearings on utility tariff proposals, stakeholder consultations, and regional public hearings conducted by the Commission had concluded.
The Executive Secretary indicated that the elements taken into account during the MYTO decision-making process included the regulated asset base of the utilities, which was assessed for the period from 2026 to 2030 to enable utilities to fulfil their asset investment needs.
He further stated that the updated rates will be effective for a duration of five years.
“There shall, however, be quarterly reviews to these rates, adjusting for factors beyond the control of the utility service providers. These factors are the Ghana cedi to US dollar exchange rate, Ghana’s inflation rate, the generation mix between hydro and thermal, as well as the cost of fuel, which is mainly natural gas, adjusted using the weighted average cost of gas (WACoG).
“These quarterly reviews will be undertaken to maintain the real value of the tariffs, thereby keeping the utility service providers financially viable while protecting the interests of consumers,” he remarked.
He pointed out that additional policy decisions, such as the incorporation of mini-grids, were factored into this MYTO to promote universal electricity access across the nation.
Regarding mini-grid tariffs, Dr. Suleman clarified that the Commission had considered the expenses associated with supplying electricity to island communities via mini-grids.