Close Menu

    Subscribe to Updates

    Get the latest headlines from PapaLinc about news & entertainment.

    What's Hot

    NPP used propaganda to paint NDC as a bad government

    ‘Not Educated, Just Follow Follow’

    Quiet Utah neighborhood evacuated as SWAT teams standoff with gunman ‘who murdered his wife’

    Facebook X (Twitter) Instagram
    • Lifestyle
    • Africa News
    • International
    Facebook X (Twitter) Instagram YouTube WhatsApp
    PapaLincPapaLinc
    • News
      • Africa News
      • International
    • Entertainment
      • Lifestyle
      • Movies
      • Music
    • Politics
    • Sports
    Subscribe
    PapaLincPapaLinc
    You are at:Home»News»Think tanks condemn PURC’s 2.45% tariff hike, demand transparency
    News

    Think tanks condemn PURC’s 2.45% tariff hike, demand transparency

    Papa LincBy Papa LincJune 29, 2025No Comments3 Mins Read0 Views
    Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
    Think tanks condemn PURC’s 2.45% tariff hike, demand transparency
    Share
    Facebook Twitter LinkedIn Pinterest WhatsApp Email


    File photo of an electricity meter File photo of an electricity meter

    Two leading think tanks, CUTS International and the Center for Environmental Management and Sustainable Energy (CEMSE), have criticized the Public Utilities Regulatory Commission (PURC) decision to increase electricity tariffs by 2.45% effective July 1, 2025.

    In a joint statement signed by Appiah Kusi Adomako, West Africa Regional Director for CUTS International, and Benjamin Nsiah, Executive Director of CEMSE, the groups described the tariff adjustment as lacking transparency, poorly timed, and economically unjustifiable.

    They argued the increase violated Section 3(c) of the PURC Act 538 of 1997, which mandates fair pricing of electricity for the mutual benefit of the government, producers, and consumers.

    The statement noted that several economic indicators—such as the appreciation of the Ghanaian cedi and declining inflation—should have resulted in a significant reduction in tariffs, not an increase.

    It noted that the cedi had appreciated by over 30 per cent between the first and second quarters of 2025, from $1/Ghc15.70 to $1/Ghc10.31

    “This appreciation means end-users overpaid by 30 per cent in previous quarters, resulting in a windfall of approximately Ghc1 billion for the government and distribution companies.

    “These funds could have been used to offset arrears or procure emergency fuel, rendering the tariff increase unjustifiable,” it added.

    The think tanks also highlighted the decline in inflation as a factor expected to ease operational costs, which should have benefited consumers.

    They accused the PURC of using a “miscalculated inflation rate.”

    The PURC reportedly used a rate of 20.67%, instead of the current 18.4%, despite having used higher and more accurate figures in earlier quarters (22.49% in Q1 and Q2 2025).

    The statement slammed the introduction of new cost components, including gas costs and a GH¢488 million arrears claim, which they said contradicted expectations of a tariff reduction in Q3 2025.

    On the gas cost component, the think tanks stated: “The Weighted Average Cost of Gas (WACOG) rose by only $0.08 (1%); a negligible impact compared to previous quarters.”

    “For instance, a 25 per cent WACOG increase in Q2 2024 led to only a 3.5 per cent tariff hike. The cedi’s appreciation further diminishes the justification for this adjustment, making the tariff increase economically dishonest,” the statement said.

    Addressing the arrears, the think tanks criticized PURC for ignoring the GH¢1 billion currency windfall and for failing to provide transparency on the arrears’ calculation.

    They also accused the PURC of not engaging stakeholders before introducing fuel costs and reserve margins into the tariff decision-making process.

    “Similarly, the reserve margin allocation remains opaque, with no attached figures or percentages,” the statement said, adding that the 27% fuel cost component lacked transparency, with no simulations, fuel price disclosures, or procurement details.

    Warning of long-term consequences, the think tanks stated that if care was not taken, PURC’s frequent upward tariff adjustments could succeed in the creation of an energy sector that was not efficient.

    It urged the regulator to address underlying issues like commercial and technical losses instead of shifting costs to consumers.

    “The lack of participation, transparency, and accountability in setting the Q3 2025 tariff undermines fairness in Ghana’s electricity pricing. We urge the PURC to halt the 2.45 per cent tariff increase and demand detailed disclosure of the tariff adjustment methodology and underlying assumptions,” the statement said.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Telegram Email
    Previous ArticleI was ready to go back to Sydney after spending six weeks in Bali… but customs wouldn’t let me leave because of a minor rule change I had never heard of
    Next Article Ghanaian teenage sensation Ben Osman eyes promotion to Valenciennes senior team
    Papa Linc

    Related Posts

    ‘Not Educated, Just Follow Follow’

    June 29, 2025

    Quiet Utah neighborhood evacuated as SWAT teams standoff with gunman ‘who murdered his wife’

    June 29, 2025

    2016, 2020, 2024 elections show Ghanaian electorates have matured and cannot be deceived – Kufuor warns NPP

    June 29, 2025
    Ads
    Top Posts

    A Plus questions the hypocrisy of NPP members who remained silent about corruption for 8 years, only to speak out after losing power.

    December 26, 202446 Views

    Here’s why Ghana Airways collapsed in 2004

    November 5, 202446 Views

    Urgent search continues for Paul Barning after he was attacked by shark during fishing competition

    February 23, 202538 Views

    Kenyan Senator breaks silence on her alleged intimate affairs, secret child with John Agyekum Kufuor

    December 21, 202434 Views
    Don't Miss
    Entertainment June 29, 2025

    NPP used propaganda to paint NDC as a bad government

    Mr Logic says NPP made NDC look bad through propaganda Talent manager and entertainment pundit,…

    ‘Not Educated, Just Follow Follow’

    Quiet Utah neighborhood evacuated as SWAT teams standoff with gunman ‘who murdered his wife’

    ‘C Ronaldo!’ – Watch fans chant as Sharaf Mahama displays his footballing skills

    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • WhatsApp

    Subscribe to Updates

    Get the latest headlines from PapaLinc about news & entertainment.

    Ads
    About Us
    About Us

    Your authentic source for news and entertainment.
    We're accepting new partnerships right now.

    Email Us: info@papalinc.com
    For Ads on our website and social handles.
    Email Us: ads@papalinc.com
    Contact: +1-718-924-6727

    Facebook X (Twitter) Pinterest YouTube WhatsApp
    Our Picks

    NPP used propaganda to paint NDC as a bad government

    ‘Not Educated, Just Follow Follow’

    Quiet Utah neighborhood evacuated as SWAT teams standoff with gunman ‘who murdered his wife’

    Most Popular

    April 3, 2023 – Russia-Ukraine information

    October 17, 20240 Views

    ‘I’ve by no means seen something like this:’ Certainly one of China’s hottest apps has the flexibility to spy on its customers, say specialists

    October 17, 20240 Views

    DKB reacts to criticism following his 24-hour economic system skit

    October 17, 20240 Views
    © 2025 PapaLinc. Designed by LiveTechOn LLC.
    • News
      • Africa News
      • International
    • Entertainment
      • Lifestyle
      • Movies
      • Music
    • Politics
    • Sports

    Type above and press Enter to search. Press Esc to cancel.

    Ad Blocker Enabled!
    Ad Blocker Enabled!
    Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.