Finance
ECG Needs Tariff Hike to Avert Financial Collapse – Majority Leader
Ghana’s Majority Leader, Mahama Ayariga, has thrown his weight behind the Public Utilities Regulatory Commission’s approval of a 2.45% increase in electricity tariffs, warning that without the adjustment, the Electricity Company of Ghana risks total operational paralysis. Addressing...
The High Street Journal
published: Jun 28, 2025
Ghana’s Majority Leader, Mahama Ayariga, has thrown his weight behind the Public Utilities Regulatory Commission’s (PURC) approval of a 2.45% increase in electricity tariffs, warning that without the adjustment, the Electricity Company of Ghana (ECG) risks total operational paralysis.
Addressing Parliament on Friday, June 27, Ayariga argued that despite stable macroeconomic indicators such as inflation, exchange rate, and fuel prices, ECG’s financial health remains fragile due to mounting debts and stagnant revenues.
“Last year, there was an effort made to prevent the PURC from adjusting the tariff; due to that, there was no adjustment for the whole period. ECG is accumulating huge debt, and it has to be paid for, and if we do not adjust the tariff to enable ECG to pay, ECG will collapse. They won’t be able to buy the input needed to keep the generators on, and we are going to have power outages,” he explained.
The tariff hike, effective July 1, 2025, has sparked public debate, with the Minority Caucus questioning its necessity amid improved economic conditions. However, Ayariga maintained that the country cannot risk a power crisis driven by ECG’s inability to procure critical inputs for electricity generation.
“The bill has to be paid. So if PURC is doing its work, I do not think there is a basis for saying that because we have improved the economy, it doesn’t mean that the debt at ECG will just be whisked away. The bill has to be paid partly by consumers,” he noted, emphasising that PURC’s decision is rooted in financial sustainability rather than short-term politics.
He further disclosed that the Minister for Energy and Green Transition will appear before Parliament next week to provide detailed insights into the tariff review process and the future roadmap for ECG.
Industry stakeholders, civil society organisations, and consumer groups have expressed mixed reactions, with many urging transparency in ECG’s cost structure to justify further adjustments.
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