Ranking Member of Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, has cautioned that the government's decision to review electricity tariffs every three months could worsen the financial strain on households and businesses.

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Addressing a press conference on Thursday, March 13, Mr. Oppong Nkrumah acknowledged the government's justification for the move but warned that it may impose further economic hardships on Ghanaians.

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“While the government argues that this is necessary for sustainability, we must also consider how it affects ordinary Ghanaians. Frequent adjustments could place an additional burden on citizens,” he stated.

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He explained that the periodic tariff revisions were designed to account for fluctuations in fuel costs, exchange rates, and other production expenses. However, he questioned whether this approach was the best way to ensure the sustainability of the power sector.

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“The adjustment of electricity tariffs every three months is meant to reflect changes in production costs, fuel prices, and exchange rate fluctuations,” he noted.

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Mr. Oppong Nkrumah also criticised the government for failing to implement measures that could cushion consumers from the impact of frequent tariff hikes.

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He argued that relying on periodic increases without addressing inefficiencies in the energy sector could undermine economic growth, making businesses less competitive and worsening the cost-of-living crisis.

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“The government must prioritise efficiency in the energy sector rather than relying on periodic tariff increases as a solution,” he urged.

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He further called for greater transparency in how tariffs are determined, stressing the need for a broader conversation among stakeholders to find a balance between cost recovery and affordability for consumers.

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