Ghanaians may soon see changes in utility tariffs as the Public Utilities Regulatory Commission (PURC) prepares for a major review in September. However, the Commission says it is too early to determine whether prices will rise, fall, or remain unchanged.
According to Dr. Eric Obutey, Director of Research and Corporate Affairs at PURC, this upcoming review will take into account both capital expenditures—such as infrastructure upgrades—and operational costs, which are typically considered in minor reviews.
He pointed out that utility providers are expected to submit proposals justifying their cost structures, adding that PURC will then analyse these submissions to determine appropriate tariff adjustments. Until that process is complete, Dr. Obutey stressed that no decision has been made on the direction of prices.
“Well, the major review is supposed to take on board capital expenses and operational expenses. In the minor tariff, we do not consider capital expenditure. We look at the operational expenses. But in the major tariff where they have to submit proposals to the Commission, we consider both capital expenses and operational expenses.
“So based on what they will submit and based on the analysis that the Commission will make that will determine what the tariff will be as we speak, I cannot say whether the tariff should be up or down or be the same as they are.
“It will just be after the numbers have been crunched and the commissioners have taken a decision on what the tariff should be, that we can speak to the public on for a fact that it will go up if we are going to do a review,” he explained in an interview on Joy FM’s Midday news on Monday, April 14.
He added, “There have been times in this country when tariffs were adjusted downward,” he said. “So while a review often raises concerns about hikes, it’s not automatic. Everything will depend on the numbers in front of us.”
The announcement comes at a time when PURC has announced an upward adjustment in the average end-user tariff for electricity by 14.75% and a 4.02% increase in water tariffs across the board for all categories of consumers.
Consumers have, however, expressed their dissatisfaction about the increment, citing service challenges, including intermittent power supply and irregular water flow. Some Ghanaians have expressed skepticism, fearing that any increase would be unjustified given the quality of service.
Despite public frustration, PURC insists its benchmarking and monitoring systems are in place to ensure utilities are held accountable and that tariff adjustments, if any, will reflect actual performance and financial realities—not arbitrary increments.
Dr Obutey noted that equipment failures are a natural part of utility operations, and planned or unplanned maintenance is often to blame for disruptions.
“These are machines. They will break down from time to time. Planned maintenance is usually communicated ahead of time—anywhere from two hours to two weeks in advance. But when faults occur unexpectedly, companies may not have time to notify the public,” he noted.
