Ghana must sustain quarterly electricity tariff adjustments to reduce fiscal risks in the energy sector, the International Monetary Fund (IMF) has cautioned.

In its 2026 Article IV Consultation and Sixth Review under the Extended Credit Facility (ECF), the IMF noted that implementing the tariff adjustments would help the sector raise enough revenue to pay its bills and operate effectively.

“Despite progress, challenges remain in transforming the sector from a source of fiscal risks to a driver of inclusive growth,” the IMF said.‎

It added that Ghana’s energy sector must maintain policy discipline and pursue reforms beyond the current IMF-supported programme to ensure investor confidence.

The sector deficit narrowed to US$1.4 billion in 2025, down from US$1.6 billion the previous year, but continued to weigh heavily on the country’s public finances.

The IMF’s comment comes in response to the PURC’s announcement of an upward review of electricity and water tariffs on Monday, June 22.

Under the Commission’s third-quarter tariff adjustment, electricity tariffs have been increased by 3.49 percent across the board, while water tariffs have been raised by 0.85 percent.

This was revealed in a press release issued by the Public Utilities Regulatory Commission (PURC) on Monday, June 22. Justifying its decision, the Commission cited the Ghana cedi–US dollar exchange rate, inflation, the electricity generation mix, and the cost of natural gas used in power generation as factors behind the increase.

In April, electricity and water tariffs were reduced by 4.81% and 3.06%, respectively. The reduction followed the Commission’s quarterly tariff review.

The Public Utilities Regulatory Commission attributed the decision to changes in the Ghanaian Cedi–United States Dollar exchange rate, domestic inflation, electricity generation mix, and the cost of fuel, particularly natural gas used in thermal power plants.

This was contained in a statement issued by the Commission on Friday, March 13.

“The Public Utilities Regulatory Commission (PURC) wishes to inform consumers of electricity and water that the existing electricity and water tariffs have been reviewed downwards to take effect from April 01, 2026.

“The Commission applied a projected Weighted Average Ghana Cedi-US Dollar Exchange Rate of GHS11.1931/US$1.0000 for the second Quarter of 2026. This projected exchange rate is based on a 3- month Actual Inter-Bank Average Ghana Cedi-US Dollar Selling Exchange Rate for the period December 01, 2025, to February 28, 2026. This indicates a 6.78% reduction from the last Quarter rate of GHS12.0067/ US$1.0000,” the statement said.

As part of PURC's multi-year tariff review process covering 2026 to 2030, electricity tariffs were increased by 9.86 percent, while water tariffs were rose by 15.92 percent.

Justifying the increases, the Public Utilities Regulatory Commission cited the investment requirements of utility providers, the need to ensure industry competitiveness, and the necessity of safeguarding consumer interests.

PURC also attributed the adjustments to the cedi–dollar exchange rate, domestic inflation, the electricity generation mix, and rising fuel prices, especially natural gas.

However, speaking to the media on Tuesday, December 9, GWCL’s Public Relations Officer, Stanley Martey, indicated that the 15.92% tariff increase is inadequate to ensure taps keep flowing often.

He stressed that the adjustment fails to provide lasting solutions to GWCL’s major financial and operational problems.

“Let’s admit that we can only keep the taps on 24/7 when we have built new treatment plants, when we have extended pipelines and all that. This tariff cannot do that,” he said.

In October, electricity tariffs for all consumer categories increased by 1.14 percent. However, water tariffs saw no increase for the same period.

According to a press statement by Acting Executive Secretary Shafic Suleman, the Commission indicated that the adjustment had become necessary due to factors such as the Ghana cedi–US dollar exchange rate, domestic inflation, the electricity generation mix, and fuel prices, especially natural gas.

The review was in line with the Commission’s Quarterly Tariff Review Mechanism, which tracks key economic factors that affect the cost of delivering utility services.

The PURC notes that the incoming hike will maintain the real value of tariffs and keep service providers financially stable. The Commission stated that it did not fully recover some costs in the previous quarter (Q3), due to currency changes or other factors.

It added that it was short of GHS0.3980 per US$1 in the third quarter and therefore incorporated this shortfall into the new tariff.

Earlier in September 2025, the Public Utilities Regulatory Commission received proposals from eight utility companies calling for a significant adjustment in utility tariffs to ensure they can fully operate at their capacities.

Proposals from the electricity distributors and the water provider for the 2025–2029 tariff period cited rising operational costs and the need to maintain efficient service delivery.

The eight companies include the Electricity Company of Ghana (ECG), Volta River Authority (VRA), Northern Electricity Distribution Company (NEDCo), Ghana Water Limited (GWL), the Ghana Grid Company (GRIDCo), and Ghana National Gas Limited, among others.

ECG pushed for a massive 225% hike in its distribution service charge. For instance, a household consuming 150 kWh monthly would pay an additional GHS64, while a residence using 100 kWh per month would pay about GHS43 more in distribution charges.