Electricity and water tariffs to drop in April as PURC

Consumers across Ghana will see a welcome reduction in their utility bills starting next month, following the Public Utilities Regulatory Commission’s (PURC) announcement of lower electricity and water tariffs for the second quarter of 2026.

In a statement issued on Friday, March 13, the Commission confirmed an average decrease of 4.81% in electricity tariffs and a 3.06% reduction in water tariffs, effective from April 1, 2026.

The price adjustment is part of the PURC’s ongoing quarterly tariff review mechanism, which allows the regulator to align utility costs with fluctuations in key economic indicators that impact the operations of service providers.

According to the Commission, the latest review was based on a comprehensive analysis of several factors, including the performance of the cedi against the US dollar, the inflation rate, the cost of natural gas for thermal power generation, and the country’s prevailing electricity generation mix.

Key Economic Indicators

For this review period, the PURC utilized a projected exchange rate of GH¢11.1931 to the US dollar. This figure, based on the three-month interbank average from December 2025 to February 2026, represents a 6.78% decrease compared to the rate used in the previous quarter.

The Commission also applied a three-month average inflation rate of 4.17% for the same period, noting a “significant reduction” from the previous quarter’s assumptions. While the currency and inflation provided a positive outlook, the weighted average cost of natural gas saw a marginal uptick, rising by 2.84% to $8.0988 per MMBtu.

The generation mix for the national grid remains unchanged, with hydro sources expected to contribute 20.9% and thermal plants providing 79.1% of the country’s power.

Impact on Consumers

Based on these inputs, the PURC approved tariff reductions across various customer segments. These include residential and non-residential users, as well as customers on the Special Load Tariff (SLT), which typically covers industrial and large commercial consumers.

In a move to support Ghana’s green energy transition, the regulator also announced the introduction of a new tariff category specifically for commercial electric vehicle (EV) charging stations. This initiative is aimed at encouraging the adoption of sustainable transport and cleaner energy sources.

The PURC emphasized that the quarterly adjustment mechanism is designed to ensure the financial viability of utility providers while simultaneously cushioning consumers from the full impact of economic volatility.