Former Deputy Energy Minister slams govt over utility tariff hikes

Former Deputy Energy Minister and Member of Parliament for Afigya Kwabre North, Collins Adomako-Mensah, has criticised the government following the recent announcement of increased electricity and water tariffs.

His reaction comes in the wake of the Public Utilities Regulatory Commission’s (PURC) announcement of a tariff hike, set to take effect on May 3, 2025. The adjustment, part of PURC’s quarterly review process, is aimed at ensuring revenue stability for utility providers while seeking to minimise the financial burden on consumers.

Under the new rates, electricity tariffs will go up by an average of 14.75%, while water tariffs will rise by 4.02%.

Speaking on Channel One Newsroom with Umaru Sanda Amadu, Mr. Adomako-Mensah expressed disappointment and surprise over the development, pointing to promises made by the ruling government during the 2024 election campaign.

“I’m a little bit surprised about the announcement because of the rhetoric prior to the 2024 election,” he said.

He cited statements made by President John Dramani Mahama and National Democratic Congress (NDC) Chairman, Johnson Asiedu Nketia, suggesting that electricity tariffs would be reduced as part of their commitment to supporting the proposed 24-hour economy.

“If you recall, this issue became topical when political figures made some pronouncements to the effect that they would rather try as much as possible to reduce electricity tariffs, especially with the 24-hour economy mantra.

“If you recall, I listened to the president and the National Chairman of the NDC, Johnson Asiedu Nketia, while campaigning [in 2024]; they indicated that one of the features of the 24-hour economy is to have electricity tariffs reduced for companies that will opt for the 24-hour economy. That is where the surprise is coming from,” Mr. Adomako-Mensah explained.

Despite his criticism, he acknowledged the financial challenges facing the PURC, particularly the issue of purchasing power in U.S. dollars while selling it to consumers in Ghana cedis.