TUC Rejects Electricity Tariff Hike, Accuses PURC of Manipulating Adjustment Process

The Trades Union Congress (TUC) of Ghana has strongly rejected the latest 2.45% increase in electricity tariffs announced by the Public Utilities Regulatory Commission (PURC), describing it as a deliberate manipulation of the quarterly tariff adjustment mechanism and a betrayal of the public’s trust.

In a statement issued on June 26, the TUC criticised the Commission for introducing two new variables which are the reserve capacity charge and cost of liquid fuel, into the tariff formula for the third quarter of 2025.

The union argued that the two were not part of the four original variables that have historically guided the quarterly reviews: the cedi/dollar exchange rate, inflation, generation mix, and fuel cost (mainly natural gas).

“This is a clear case of deliberate manipulation intended to deny workers and Ghanaians the benefit accrued from the current low foreign exchange and inflation rates,” the TUC said.

According to the TUC, recent macroeconomic gains, especially the appreciation of the cedi against the dollar, should have translated into significant reductions in both electricity and water tariffs. Instead, the government and PURC have used different standards to their advantage, citing the cedi’s appreciation as a reason to compel the Ghana Private Road Transport Union (GPRTU) to reduce fares, while ignoring the same logic when it came to utility pricing.

“The least we had expected, after accepting a modest 10% wage increase while inflation was over 23%, was for the government to offer some relief by reducing electricity tariffs, not imposing another increase,” the statement added.

The TUC described the tariff hike as not only “unwarranted” but also unethical, undermining the credibility of the tariff-setting process. It emphasized that during the previous quarter, when economic indicators were unfavourable, consumers were hit with a 14.75% increase in electricity tariffs and a 4% increase in water tariffs. Now that the indicators are favourable, the Commission has chosen to bypass its own established principles.

Even the Bank of Ghana, the TUC noted, had publicly expected a downward revision in tariffs based on exchange rate gains. The Governor of the Central Bank recently stated that appreciation of the cedi typically lowers tariff cost components, suggesting a reduction was imminent.

The union called on the PURC to immediately withdraw the third quarter tariff increase and return to the negotiation table.

“We demand fairness to the Ghanaian worker, and transparency in the tariff adjustment process,” said Joshua Ansah, Secretary General of the TUC.

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