Electricity tariffs up 9.86%, water by 15.92% effective January 2026 – PURC

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The Public Utilities Regulatory Commission (PURC) has announced upward adjustments to electricity and water tariffs following the completion of its 2026–2030 Multi-Year Tariff Review (MYTO).

The new rates take effect from January 1, 2026.

According to a statement from the PURC, the tariff decision follows months of investment hearings, stakeholder engagements, and regional public forums held nationwide as part of the regulatory process.

Electricity tariffs to increase by 9.86%

Electricity tariffs for all customer categories will rise by 9.86%.

The Commission says the adjustment reflects the investment needs of power utilities, expected generation inputs, and macroeconomic indicators such as inflation, the cedi–US dollar exchange rate, and the cost of natural gas.

The review also captured operational expenses and the regulated asset base of utilities for the next five years.

Quarterly tariff reviews will continue to account for variables beyond the control of utility providers, including fuel costs and the generation mix.

Water tariffs up by 15.92%

Water tariffs will increase by 15.92% over the 2026–2030 period.

According to the PURC, the adjustment is based on projected production and sales volumes, non-revenue water levels, expected capital investments, and prevailing macroeconomic conditions.

Under the new tariff structure:

• Residential consumers will see increases across all consumption bands.
• Non-residential, commercial, industrial and public institutions will also face higher charges.
• Service charges remain largely unchanged.

For the first time, the MYTO includes tariffs for mini-grids serving island and remote communities.

The cost of supplying these communities at uniform national rates has been factored into the revenue requirement of the Volta River Authority (VRA), enabling smoother implementation.

Key variables driving tariff adjustments

The PURC highlighted several factors behind the new tariffs, including:

• Projected electricity generation mix: Thermal at 78.79%, hydro at 20.90%, and renewables at 0.31%.
• Weighted Average Cost of Gas (WACoG) increasing to US$7.8749/MMBtu.
• Improved targets for transmission and distribution system losses.
• Inflation assumption of 8% and an exchange rate projection of GHS 12.01 to US$1.

For the water sector, non-revenue water levels are projected to decline to 43%, alongside updated production and sales forecasts for the coming years.