Energy Ministry hits back at Minority, says 9% tariff hike is modest compared to their 27%

The Ministry of Energy and Green Transition has dismissed criticisms from the Minority in Parliament over the Public Utilities Regulatory Commission’s (PURC) decision to increase electricity tariffs by 9% effective January 2026.

Speaking on Joy FM’s Top Story on Monday, December 8, the Ministry’s Spokesperson and Director of Communication, Richmond Rockson, warned the Minority against politicising the adjustment, arguing that government inherited a severely distressed power sector.

Mr. Rockson stated that the previous administration left behind over GH¢80 billion owed by the Electricity Company of Ghana (ECG), US$1.7 billion in arrears to Independent Power Producers (IPPs), inefficiencies in the Cash Waterfall Mechanism, weak procurement controls, and recurrent shortages of liquid fuels for thermal plants.

“These were crippling challenges that undermined efficiency and stability in the power sector. The government has since implemented decisive reforms to address them,” he said.

He maintained that the current 9% adjustment must be viewed in context, especially when compared to the last major increment of 27% under the previous administration—an increase he said placed significant strain on consumers.

“If you compare the current 9% increase to the last major increment of 27%, it clearly reflects the impact of the reforms championed by the government under Energy Minister John Jinapor, as well as the rebound of the economy and positive macroeconomic indicators,” he noted.

Rockson added that since January 2025, reforms in the energy sector have strengthened compliance with the Cash Waterfall Mechanism, improved revenue collection by ECG, ensured timely settlements with IPPs, and promoted transparent procurement practices.

These measures, he said, have resulted in stable power supply, reduced technical and commercial losses, and a marked improvement in sector performance.

“The tariff adjustment announced by PURC is essential not only to safeguard utilities but also to support critical investments and maintain long-term stability in the power sector,” he stressed.

He called on the Minority to adopt a constructive approach, insisting that politicising decisions meant to sustain Ghana’s electricity infrastructure undermines ongoing reforms and the progress achieved so far.