The Minority in Parliament has mounted a strong challenge against the Mahama administration over the latest increase in electricity tariffs, questioning why Ghanaians continue to pay higher utility bills despite repeated government assurances that the economy is recovering and key macroeconomic indicators are improving.
Addressing a press conference in Parliament on Thursday, June 25, Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako-Mensah, argued that the latest tariff adjustment contradicts the government’s own narrative that the Ghanaian economy has turned the corner, evidenced by a stronger cedi, declining inflation, and lower interest rates.
According to the Minority, if the economic gains repeatedly highlighted by the government are genuine, ordinary Ghanaians should already be experiencing relief in their daily cost of living, rather than facing further increases in electricity tariffs.
The latest criticism follows the Public Utilities Regulatory Commission’s (PURC) announcement of another upward adjustment in electricity tariffs after consumers had only recently benefited from a marginal reduction.
The development has reignited public debate over utility pricing amid the government’s continuous celebration of improvements in the country’s macroeconomic indicators.
Speaking on behalf of the Minority, Collins Adomako-Mensah questioned why consumers continue to bear the burden of increasing electricity costs at a time government insists that inflation is falling, interest rates are easing, and the Ghana cedi has appreciated significantly against major international currencies.
“If those gains are genuine, Ghanaians should be experiencing them in their daily lives,” he stressed.
The lawmaker explained that Ghana’s electricity generation system relies heavily on thermal power, which depends largely on imported crude oil and natural gas priced in foreign currencies.
According to him, the reported appreciation of the cedi by nearly 40 percent should ordinarily reduce the domestic cost of importing fuel for power generation and ultimately translate into lower electricity tariffs for consumers.
“The electricity sector depends heavily on thermal generation, whose principal inputs, imported crude oil and imported natural gas, are priced in foreign currency. A cedi that has appreciated by nearly 40% should significantly reduce the domestic cost of these imports,” he stated.
He further argued that the reported decline in inflation and lower interest rates should equally reduce production and operational costs across the economy, making the latest tariff increase difficult to justify.
“Falling inflation and easing interest rates should further reduce cost pressures across the economy. Yet the Public Utilities Regulatory Commission is increasing electricity tariffs once again. This contradiction demands answers,” he stated.
The minority, therefore, challenged the government to provide a comprehensive explanation for what it described as inconsistencies between the country’s economic performance and the continued increase in utility prices.
“If the strength of the cedi is real, if the decline in inflation is real, and if the reduction in interest rates reflects genuine macroeconomic improvement, why are utility tariffs continuing to rise? What exactly is driving these increases?” Mr. Adomako-Mensah asked.
According to him, the Ghanaian public deserves detailed and transparent explanations rather than broad pronouncements about economic recovery.
“The Ghanaian people deserve more than broad economic headlines. They deserve full transparency. Until that explanation is provided, Ghanaians will be justified in asking whether the celebrated economic gains are being artificially sustained while households and businesses continue to bear the burden of rising utility costs,” he added.
The Minority also accused the Mahama administration of taking credit for a 4.81 percent reduction in electricity tariffs announced earlier this year while remaining silent over the subsequent 3.49 percent increase scheduled to take effect.
“We therefore say to President Mahama and the NDC government plainly: you cannot celebrate a 4.81% reduction in April and remain silent when a 3.49% increase follows in July. You own this tariff regime. You appointed the leadership of the Public Utilities Regulatory Commission. You set the policy environment. You are accountable for every pesewa increase on every electricity bill in Ghana,” he declared.
The Minority maintained that tariff decisions should accurately reflect prevailing economic conditions and insisted that the PURC must provide evidence-based justifications for every upward adjustment imposed on consumers.
Mr. Adomako-Mensah further announced that the Minority would continue to scrutinise every tariff review by the Public Utilities Regulatory Commission while holding both the regulator and government accountable for what they describe as unjustified increases in utility prices.
He also called on civil society organisations, organised labour, industry associations and consumer advocacy groups to join demands for greater transparency and accountability in the determination of electricity tariffs.
According to him, utility pricing affects every household and business in Ghana and should therefore be subjected to greater public scrutiny.
Looking ahead to the political implications of the issue, the Minority warned that Ghanaians would remember the continued increase in utility bills when they next head to the polls.
“The 2028 elections are not far away, and Ghanaians will remember,” he cautioned.
Ending his address with a strong analogy, the legislator criticised the current tariff regime, saying the government was placing unbearable pressure on consumers without delivering corresponding value.
“You cannot keep increasing the pressure on the tap and hand Ghanaians a basket to fetch the water; this tariff regime leaks more than it delivers,” he concluded.
