
Utility tariff hikes not the solution to ECG’s problems – Fmr ECG boss Dubik Mahama warns
4 mins read
27th June 2026 12:36:04 PM
4 mins readBy: Abigail Ampofo

Ghanaians are to brace themselves for another tariff hike in water and electricity, effective July 1, according to the Public Utilities Regulatory Commission (PURC).
Among those who have reacted to the proposed hike is the former Managing Director of the Electricity Company of Ghana (ECG), Mahama Dubik.
Speaking on Channel One TV’s The Big Issue, hosted by Umaru Sanda on Friday, June 27, Mr Dubik described the proposed increase as an unnecessary burden on consumers, citing the need to address the operational challenges facing the nation’s power distributor.
According to him, once these challenges, such as metering and software issues, are addressed, there would be no need for the upward trend in utility tariffs by the national regulator, PURC.
“What does inflation have to do with the operations of ECG? We keep going round and round on this issue. The solution to this tariff problem is in operations. Tariff increment is not a solution at this point. If we are to tie things properly, do you think we still need to have these tariff increments that are going to burden the customer? The answer will be no,” he said.
He further urged the company to address the operational challenges to help Ghanaians better appreciate any tariff adjustments.
“There are certain operational steps that have to be put in place for us to appreciate the tariff increment; otherwise, the tariff increment is a theoretical exercise. There’s a metering problem, a software problem, which was solved,” he added.
His comments come after the PURC announced 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.
4 mins read
2 mins read
2 mins read
4 mins read
3 mins read
3 mins read
6 mins read
3 mins read
1 min read