On December 2, 2025, the Public Utilities Regulatory Commission (PURC) announced an imminent increase in tariffs, with the new rates set to take effect from January 1, 2026. The Commission said the increases, 9.86% for electricity and 15.92% for water, had become necessary to meet utility investment needs, respond to macroeconomic pressures, and ensure the long-term stability of the sector.

The announcement was met with widespread disapproval, particularly from stakeholders and the general public.

Consequently, the Trades Union Congress (TUC), the labour umbrella body that represents workers’ interests and coordinates labour unions, engaged the Commission on two different occasions, first, about a week after the increase was announced, and later in a subsequent meeting nearing the end of December.

Following these engagements, a joint statement released by the institutions revealed efforts to balance consumer concerns with the financial sustainability of utilities; however, the PURC’s stance remained unchanged.

The Commission contended that any reversal of its 2026–2030 Multi-Year Tariff Order (MYTO) could have serious consequences for the stability of Ghana’s energy and water sectors, as well as the broader economy.

The Multi-Year Tariff Order (MYTO) is a regulatory framework used by the Public Utilities Regulatory Commission (PURC) to set electricity and water tariffs over a fixed period, 2026 to 2030, in this case. It is intended to ensure predictable pricing, financial stability for utilities, and protection for consumers.

The Commission reaffirmed this position during meetings with the Trades Union Congress (TUC) held on December 11 and 30, 2025, during which the new tariff schedule, which took effect on Thursday, January 1, 2026, was discussed.

“…The PURC reaffirmed its position that any reversal of the tariff decision would have significant implications, not only for the Commission's independence but, crucially, for the stability of the energy and water sectors and the broader Ghanaian economy,” parts of the statement said.

According to the joint statement, discussions focused particularly on the implications of the tariff adjustments on the living conditions of workers, as well as on electricity stability and investments in the power and water sectors. The discussions also explored avenues for collaboration between the two institutions.

While the PURC stressed the need to maintain the increases, it also acknowledged the concerns raised by the TUC and committed to addressing them during the next tariff review window.

The TUC, on the other hand, in line with its mandate to advocate for workers’ interests, pledged to engage the government on wage levels, anticipating the financial impact the increases would have on workers. It added that it would continue to monitor the situation to determine its next course of action.

The TUC said it would continue to monitor the impact of the tariff adjustments on salaries and wages, noting that the findings would inform Congress’s subsequent course of action. It further indicated that it would engage the government on current wage levels and their impact on the cost-of-living conditions of the Ghanaian worker.

Meanwhile, the TUC had earlier warned that it would call a nationwide strike if the government failed to intervene to stop or adjust the new utility tariff increases announced by the PURC.

In a statement signed by Secretary-General Joshua Ansah on Wednesday, December 3, the TUC argued that the 9% wage adjustment for 2026 was insufficient to cushion workers against a 9.86% increase in electricity tariffs and a 15.92% rise in water tariffs scheduled to take effect on January 1, 2026.

“Workers cannot accept these increases unless the government returns to the negotiating table to top up the wage increase for 2026. Anything short of that, the TUC will mobilise workers to resist the implementation of these insensitive increases in utility prices,” the statement said.

The union further described the tariff adjustments as an unpleasant “New Year’s gift,” deliberately targeting the 9% increase in the national minimum wage and base pay, an increment it said it was still struggling to accept due to the additional financial burden it would place on workers.

As background, electricity tariffs for all consumer categories had earlier increased by 1.14 per cent in October. Water tariffs, however, saw no increase during the same period.

According to a press statement issued at the time by Acting Executive Secretary Shafic Suleman, the Commission said the adjustment had become necessary due to factors including the Ghana cedi–US dollar exchange rate, domestic inflation, the electricity generation mix, and fuel prices, particularly natural gas.

The review was conducted under the Commission’s Quarterly Tariff Review Mechanism, which tracks key economic indicators that affect the cost of delivering utility services.

The PURC explained that the adjustments were intended to maintain the real value of tariffs and keep service providers financially stable, noting that it had not fully recovered some costs in the previous quarter (Q3) due to currency fluctuations and other factors.

It added that the Commission recorded a shortfall of GHS0.3980 per US$1 in the third quarter and had therefore factored the deficit into the new tariff structure.

Earlier in September, the PURC had received proposals from eight utility companies seeking significant adjustments in tariffs to enable them to operate at full capacity.

The proposals, submitted by electricity distributors and the water provider for the 2025–2029 tariff period, cited rising operational costs and the need to sustain efficient service delivery.

The eight companies included 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 had pushed for a 225% increase in its distribution service charge. Under the proposal, a household consuming 150 kilowatt-hours (kWh) per month would pay an additional GHS64, while one using 100 kWh would pay about GHS43 more.

As part of its request, ECG proposed raising the Distribution Service Charge from the existing 19 pesewas per kilowatt-hour to nearly 62 pesewas per kilowatt-hour.

“The PURC will undertake the major adjustment in the fourth quarter of 2025 to reflect capacity charges, additional liquid fuel usage, and capital expenditure. The current charge is below industry benchmarks, and cedi depreciation has reduced its value. US$408 million has been spent on network upgrades and smart meters,” parts of ECG’s petition stated.

ECG also noted that the adjustment had long been overdue, recalling that in 2022 it proposed a charge of 39.95 pesewas, but only 19.04 pesewas was approved.

According to the company, it had invested US$48 million in network upgrades and smart metering systems to improve power reliability, reduce outages, and align tariffs with international standards, but these investments had not resulted in adequate cost recovery.

ECG further projected annual revenue of GHS9.5 billion between 2025 and 2029 if the proposed charges were approved, explaining that the funds would be used to cover operational costs, asset depreciation, staff salaries, and recent capital expenditures.

The Volta River Authority (VRA) also sought a 59% increase to cover rising electricity production costs. If approved, the Bulk Generation Charge would rise from 45.0892 pesewas per kilowatt-hour to 71.8862 pesewas.