IMF Backs Proposed Utility ECG Tariff Increases: “Essential From Our Perspective”
- The International Monetary Fund has spoken on the proposed utility tariff adjustments given by the Electricity Company of Ghana
- The IMF’s Director of Communications, Julie Kozack, addressed the press and touched on the controversial proposals
- The Electricity Company of Ghana has proposed a 225% increase in its Distribution Service Charge
The International Monetary Fund is backing proposed utility tariff adjustments made by Ghana's utility companies in recent times.
It described these adjustments, specifically for electricity, as vital to fixing inefficiencies and attracting investment.
Source: Getty Images
The IMF’s Director of Communications, Julie Kozack, told the press on September 11 that the fund’s backing is aimed at restoring financial stability in the energy sector.
“What is essential from our perspective is that any tariff adjustments in the electricity sector aim to address longstanding inefficiencies in the sector, importantly, that they support much-needed investment in the electricity sector, and also that they are aimed at preventing the accumulation of arrears in the energy sector."
Kozack also explained that the IMF’s support is also to push for broader sector reforms.
The IMF’s comments come as the Public Utilities Regulatory Commission (PURC) considers new tariff adjustments, expected to take effect from October 1, 2025.
The Commission is currently engaging stakeholders on proposals submitted by the Electricity Company of Ghana and Ghana Water Limited.
The Electricity Company of Ghana has proposed a massive 225% increase in its Distribution Service Charge, while Ghana Water proposed a tariff increase of 280%.
The Electricity Company of Ghana has argued that the increase is necessary to avert financial collapse.
The proposed new charge would see the Distribution Service Charge rise from its current GHp19.0384/kWh to GHp61.8028/kWh for the period between 2025 and 2029.
Recent electricity tariff increases
From July 1, the Public Utilities Regulatory Commission raised electricity tariffs for all categories of consumers by 2.45%.
Read also
Spare parts dealers in Abossey Okai reaffirm eviction order against Nigerian traders, video
The commission factored in key economic variables, including the cedi-to-dollar exchange rate, inflation, natural gas prices, and the electricity generation mix between hydro and thermal sources.
Electricity tariffs were increased by an average of 14.75% in the second quarter of 2025.
The Electricity Company of Ghana's revenue challenges prompted a Nationwide Revenue Mobilisation exercise in June.
Source: Getty Images
It focused on all categories of customers with arrears, spanning residential, commercial, industrial and Ministries, Departments and Agencies.
The exercise was monitored by teams with a view to apprehending and prosecuting customers who attempt to interfere with the exercise.
For example, the Electricity Company of Ghana uncovered illegal electricity supply to over 400 homes at Rehoboth Estate in Kweiman.
IMF endorses GH¢1 increase in fuel tax
YEN.com.gh reported that the IMF supported the GH¢1 increase per litre in taxes on fuel products.
At the time of the tax increase, Kozack said the increase was a strategic measure aligned with the country’s fiscal goals under Ghana's ongoing IMF Extended Credit Facility programme.
The government justified the tax saying it was needed to support the clearing of the $3.1 billion energy sector debt.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
