Majority Leader defends 2.45% electricity tariff hike as necessary to save ECG
The Majority Leader, Mahama Ayariga, has defended the Public Utilities Regulatory Commission’s (PURC) decision to approve a 2.45% increase in electricity tariffs, describing it as part of a broader government strategy to address the growing debt burden facing the Electricity Company of Ghana (ECG).
Speaking in Parliament on Friday, June 27, Ayariga explained that while key economic indicators such as inflation, exchange rate stability, and fuel prices have remained relatively stable, the adjustment is necessary to help ECG raise enough revenue to sustain operations and avoid a potential power crisis.
“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.
His comments came in response to concerns raised by the Minority Caucus, who questioned the rationale behind the increase despite the relative stability of macroeconomic indicators.
Ayariga further assured that the Minister for Energy and Green Transition will appear before Parliament next week to provide further clarity on the tariff review process.
“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 emphasised.
The 2.45% upward adjustment, which takes effect on July 1, 2025, has attracted mixed reactions from civil society, industry stakeholders, and consumer groups.
