Electricity Tariffs to Increase by 9.86%, Water Tariffs to Increase by 15.92% From January 2026
- Electricity tariffs and water tariffs are scheduled to increase from January 2026, according to the Public Utilities Regulatory Commission
- The tariff increases are said to be in line with the Public Utilities Regulatory Commission's Multi-year Tariff Review Order regime
- The Public Utilities Regulatory Commission also stated that the rates would be subject to quarterly reviews due to external factors
The Public Utilities Regulatory Commission has announced a 9.86% increase in electricity tariffs across all customer categories and a 15.92% upward review of water tariffs for all classes, with the new rates taking effect on January 1, 2026.
This is considered a major tariff review, and is set to remain in force from 2026 to 2030, in line with the Commission’s Multi-year Tariff Review Order regime.
Source: Getty Images
3News reported that the decision follows extensive investment hearings, stakeholder consultations, and regional public hearings.
The review considered the investment requirements of the utility providers, the competitiveness of industries, and the general living conditions of consumers.
According to the Public Utilities Regulatory Commission, in a post on Facebook, the decision is influenced by significant changes in macroeconomic variables and the utility generation mix.
For electricity, the approved factors for the 2026-2030 Multi-year Tariff Review Order include a shift in the generation mix, with the proportion of thermal power increasing to 78.79% while hydro drops to 20.90%.
The approved exchange rate for the period is $12.0067.
The Public Utilities Regulatory Commission noted that the rates will be subject to quarterly reviews to adjust for factors beyond the utilities’ control, such as the Ghana Cedi-US Dollar exchange rate, local inflation, and the weighted average cost of gas.
Additionally, the commission included a new policy decision to account for the cost of providing electricity to island communities via mini-grids to ensure universal electricity access.
Recent electricity tariff increases in Ghana
From July 1, the Public Utilities Regulatory Commission raised electricity tariffs for all categories of consumers by 2.45%. In September, the commission increased electricity tariffs by 1.14%.
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.
Source: Getty Images
Following these, the Electricity Company of Ghana proposed a massive 225% increase in its Distribution Service Charge, while Ghana Water proposed a tariff increase of 280%.
The provider 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.
IMF endorses GH¢1 increase in fuel tax
YEN.com.gh also previously reported that the International Monetary Fund (IMF) had supported the GH¢1 increase per litre in taxes on fuel products.
The increase was described as a strategic measure aligned with the country’s fiscal goals under Ghana's ongoing IMF Extended Credit Facility programme.
The government justified the tax at the time, amid public criticism, saying it was needed to support the clearing of the national $3.1 billion energy sector debt.
Proofreading by Bruce Douglas, copy editor at YEN.com.gh.
Source: YEN.com.gh
