Joshua Ansah
The Trades Union Congress (TUC) has expressed surprise in the recent 2.45 % electricity tariff hike announced by the Public Utilities Regulatory Commission (PURC).
In a statement signed by the Secretary General, Joshua Ansah recalled that at a meeting of the General Council, the second highest decision-making body of the TUC Council thoroughly discussed the newly announced tariff and “condemned the PURC for this unwarranted upward adjustment, but more worrying finds the process adopted unethical, unilateral and a betrayal of trust on behalf of the utility consumer.”
The TUC reminded the PURC of its divine mandate to uphold fairness, integrity and transparency in its line of work.
In the statement the PURC put out on Friday, April 11, 2025 in which the Commission communicated a tariff increase of 14.75% for electricity and 4% for water for the first and second quarters of 2025, the Commission indicated the review variables for the quarterly adjustment of utility tariffs, stated the TUC.
The hike incorporates changes in four (4) key variables namely, the cedi/dollar exchange rate, inflation, electricity generation mix and cost of fuel (mainly natural gas) in the electricity tariffs. All previous quarterly adjustments of electricity tariffs have considered these four variables, which is consistent with the rate setting guidelines of the PURC.
For the third quarter tariff review, the PURC now unilaterally springs a surprise with the introduction of two (2) additional variables into the adjustment process. In addition to the four (4) variables that the Commission has used for all of its quarterly adjustments, including the last one it did in April 2025, the Commission now introduces a so-called ‘reserve capacity charge’ and ‘cost of liquid fuel’, observed the TUC, adding that “this is a clear case of deliberate manipulation of the quarterly adjustment mechanism intended to deny workers and Ghanaians the benefit accrued from the current low foreign exchange and inflation rates.”
Our calculation of this third quarter adjustment, the TUC added, “indicates that the cedi appreciation against the US dollar alone should result in significant reduction in both electricity and water tariffs.”
Government, it noted, “has used the appreciation of the cedi to compel our affiliate the Ghana Private Road Transport Union (GPRTU) to reduce transport fares, yet when it got the opportunity, it has failed to demonstrate same measure of fairness in its tariff decisions.”