Majority Leader Mahama Ayariga has defended the Public Utilities Regulatory Commission’s (PURC) approval of a 2.45% increase in electricity tariffs, calling it a critical measure to address the rising debt of the Electricity Company of Ghana (ECG).
Speaking in Parliament on Friday, June 27, Mahama Ayariga explained that although economic indicators such as inflation, fuel prices, and exchange rate levels have remained relatively stable, ECG’s growing financial challenges make the tariff adjustment unavoidable.
“Last year, there was an attempt to block the PURC from adjusting tariffs, so no adjustments were made during that period. Now, ECG is burdened with significant debt. If we don’t act by adjusting tariffs, ECG will collapse. They won’t have the funds to procure inputs needed to keep generators running, and this will lead to power outages,” he cautioned.
His remarks were in response to concerns from the Minority Caucus, who questioned the justification for the tariff hike amidst perceived economic improvements.
Mahama Ayariga emphasized that consumers must bear part of the cost of electricity production.
“The bills must be paid. Improved macroeconomic indicators don’t erase ECG’s debt. The PURC is only doing its job, and part of the burden must be shouldered by consumers,” he stated.
He also announced that the Minister for Energy and Green Transition will appear before Parliament next week to provide further explanation on the tariff review and its implications.
The new tariff is set to take effect on July 1, 2025.
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