Consumers in Ghana will see a welcome reduction in their utility bills starting next month. The Public Utilities Regulatory Commission (PURC) has announced a downward adjustment in electricity and water tariffs, effective April 1, 2026.
In a statement released on Friday, the Commission confirmed that electricity tariffs will be reduced by an average of 4.81 percent, while water tariffs will see a decrease of 3.06 percent. These changes are the result of the Commission’s mandatory quarterly tariff review, designed to ensure prices reflect current economic realities.
Factors Driving the Reduction
The PURC explained that the quarterly review tracks several key indicators that influence the cost of providing utilities, including the Ghana Cedi to US dollar exchange rate, domestic inflation, the electricity generation mix, and fuel costs.
The latest review revealed positive trends that allowed for the reduction:
· Cedi Appreciation: The Commission applied a projected weighted average exchange rate of GHS 11.1931 to US$1 for the second quarter. This represents a significant 6.78 percent improvement from the previous quarter’s rate of GHS 12.0067, easing the pressure on foreign exchange-dependent costs.
· Lower Inflation: An average inflation rate of 4.17 percent was used in the calculations, marking a sharp 47.87 percent decline compared to the previous quarter.
While these factors contributed to the lower tariffs, the Commission noted a marginal increase in the Weighted Average Cost of Gas (WACOG), which rose by 2.84 percent to US$8.0988 per MMBtu. The projected power generation mix for the quarter remains stable, with 20.90 percent from hydro sources and 79.10 percent from thermal sources, consistent with the 2025 Multi-Year Tariff Order.
Supporting Green Transition
In a significant development, the PURC also announced the introduction of a commercial tariff for Electric Vehicle (EV) charging. This is a first for the Commission and is intended to support Ghana’s transition to green energy by providing a clear pricing framework for this emerging sector.
Commitment to Service Delivery
The PURC reiterated its commitment to monitoring the operations of utility providers to ensure they remain financially viable while delivering improved services.
“The Commission applied a projected Weighted Average Ghana Cedi-US Dollar Exchange Rate of GHS11.1931/US$1.0000 for the second Quarter of 2026,” portions of the statement read. “This indicates a 6.78% reduction from the last Quarter rate.”
The Commission expressed its gratitude to stakeholders for their continued support and assured the public that it will continue to hold utility providers accountable to ensure value for money for all consumers.
