Tariff Hikes: Minority Demands Withdrawal, Accuses Government of Insensitivity
- The Minority in Ghana’s Parliament has called on the government to reverse recent utility tariff hikes announced by the PURC
- George Aboagye described the 28.14% cumulative increase as unjustified, citing power sector inefficiencies and financial burdens on Ghanaians
- He warned that the hikes could push families into “utility poverty” and cripple SMEs already struggling with high operational costs
The Minority in Ghana's Parliament has raised concerns over the recent utility tariff increment announced by the Public Utilities Regulatory Commission (PURC).
Addressing a press conference on Monday, December 8, 2025, the Minority called on the government to immediately withdraw the tariff increment.
Source: Facebook
Speaking on behalf of the group, MP for Asene Manso Akroso and Ranking Member of the Energy Committee, George Kwame Aboagye, described the hikes as "punitive and unjustified."
The Minority's criticism comes after the PURC approved a 9.86 per cent increase in electricity tariffs and a 15.92 per cent rise in water tariffs.
The increment will take effect on January 1, 2026, as part of the PURC’s multi-year review from 2026 to 2030.
According to George Kwame Aboagye, the tariff adjustment, which results in a cumulative increase of 28.14 per cent, was unacceptable given Ghana's commercial and technical power losses totalling 32 per cent.
He said the John Mahama-led administration's decision to increase tariffs despite the inefficiencies in the sector is a slap in the face of ordinary Ghanaians.
"The Minority stands with Ghanaian workers, households, small businesses, and industries struggling to survive. These tariff hikes must be reversed immediately,” he demanded.
The MP for Asene Manso Akroso further claimed that the tariff would push more households into what he described as “utility poverty,” leaving families unable to afford basic electricity.
New utility tariff will aftect SMEs
He also argued that many SMEs, which are the backbone of the Ghanaian economy, could collapse due to rising operational costs.
“These tariff hikes are not reforms, they are punishments. They are not solutions. They are symptoms of failed leadership and poor policy choices. We call on the government to halt these incessant increases," he stated.
George Kwame Aboagye explained that Ghana’s current peak demand of 4,080 megawatts and an average demand of about 3,500 megawatts show the scale of inefficiencies.
Besides this, he claimed Ghana is losing about $80 million to $90 million as a result of the commercial and technical power losses.
Source: Facebook
IMF backs proposed Utility ECG Tariff Increases
In a related development, YEN.com.gh the International Monetary Fund had backed the 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.
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.
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.
Source: YEN.com.gh
