Electricity Tariff Hike Justified to Save ECG – Mahama Ayariga Tells Parliament
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 a necessary move to safeguard the financial sustainability of the Electricity Company of Ghana (ECG).
Speaking in Parliament on Friday, June 27, 2025, Ayariga explained that while key economic indicators such as inflation, fuel prices, and exchange rates have shown signs of stability, ECG’s worsening debt situation necessitates the upward tariff adjustment.
According to him, a prior freeze on tariff adjustments led to increased financial pressure on ECG, making it difficult for the utility provider to maintain operations. “Last year, there was an attempt to block the PURC from making adjustments. Now, ECG is in serious debt. If tariffs are not increased, the company will be unable to buy the necessary inputs to keep generators running, which could result in nationwide power outages,” he warned.
The Majority Leader made the remarks in response to criticisms from the Minority Caucus, who questioned the rationale for a tariff hike amid claims of improved macroeconomic conditions.
Ayariga maintained that consumers must contribute to the cost of electricity production, noting that a functional ECG is critical to the country’s power stability. “Better economic indicators do not eliminate ECG’s financial obligations. The PURC is simply fulfilling its mandate, and consumers must understand that the bills must be paid,” he added.
He also announced that the Minister for Energy and Green Transition is scheduled to appear before Parliament next week to provide additional insights into the tariff review and outline the implications for consumers and the power sector.
The new electricity tariff adjustment will take effect from July 1, 2025, and is aimed at helping ECG recover financially while ensuring uninterrupted power supply across the country.
