Majority Leader Mahama Ayariga has justified the Public Utilities Regulatory Commission’s (PURC) recent approval of a 2.45% increase in electricity tariffs, arguing that the move is necessary to prevent the collapse of the Electricity Company of Ghana (ECG) amid mounting debts.
Addressing Parliament on Friday, June 27, 2025, he noted that although macroeconomic indicators such as inflation, fuel prices, and the exchange rate have remained relatively stable, ECG’s financial troubles require urgent attention.
“Last year, efforts were made to prevent the PURC from adjusting the tariff, and as a result, there was no adjustment for the entire period. ECG is accumulating huge debts, and these debts must be paid. If we do not adjust the tariff to enable ECG to meet its obligations, the company will collapse. They won’t be able to purchase the inputs needed to keep the generators running, and we are going to experience power outages,” he stated.
He further assured the House that the Minister of Energy and Green Transition is expected to appear before Parliament next week to elaborate on the tariff review process.
“The bills must be paid. So, if the PURC is performing its mandate, I do not think there is a basis for claiming that just because the economy has improved, ECG’s debts will magically disappear. Consumers will have to pay part of these costs,” he added.
Meanwhile, the Minority in Parliament has criticised the PURC’s decision to increase electricity tariffs by 2.45%, effective July 1, 2025.
At a press conference in Parliament on Thursday, June 26, 2025, Ranking Member on the Energy Committee, George Kwame Aboagye, questioned the justification for the increment.
“There is no justification for this increase. About 70% of our power generation relies on fuel and gas, Heavy Fuel Oil (HFO), and Light Crude Oil (LCO). Most generators are dual-cycle, so if HFO and LCO prices rise, we can switch to gas. The price of gas has not gone up,” he argued.
The 2.45% increase, set to take effect on July 1, 2025, has triggered mixed reactions, with consumer groups, industry players, and civil society organisations divided over the timing and necessity of the increment.
JKB/MA
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