Parliament Opposition Slams Utility Tariff Hikes as Consumer Punishment

Parliament’s Minority Caucus has demanded immediate withdrawal of new electricity and water tariff increases, describing them as unfair punishment for utility company failures. The Public Utilities Regulatory Commission (PURC) announced increases of 9.86 percent for electricity and 15.92 percent for water, effective January 1, 2026.

George Kwame Aboagye, Ranking Member on Parliament’s Energy Committee, told journalists at a December 8, 2025 press conference that the hikes represent an unacceptable shock to struggling households and businesses. He characterized the decision as exploitation rather than leadership, warning of catastrophic economic consequences.

Aboagye stressed that the Minority’s position remains firm and non-negotiable, demanding immediate reversal of the tariff increases and protective measures for consumers and businesses. He stated that Ghanaians deserve relief, not repeated economic shocks.

The opposition’s criticism centers on persistent operational failures at the Electricity Company of Ghana (ECG) and Ghana Water Company Limited (GWCL). The Food and Beverages Association of Ghana (FABAG) joined the outcry, calling the increases unacceptable, unjustifiable and insensitive, particularly after Parliament’s Public Accounts Committee exposed inefficiencies and financial waste at ECG.

GWCL management revealed in March 2025 that only 48 percent of water produced reaches consumers, with 52 percent lost to pipeline leakages, illegal connections and infrastructure inefficiencies. In the Central Region alone, over 41 percent of water produced is lost to theft and leakage.

Between August and September 2025, GWCL uncovered illegal connections and meter bypasses worth more than GH¢4.4 million in just six weeks across Accra and Tema. The investigations revealed 109 customers engaged in illegal practices through meter bypasses and unauthorized connections to water mains.

Aboagye accused the government of choosing the lazy path of shifting its failures onto already suffering consumers instead of tackling systemic inefficiencies within the power sector. He highlighted financial damage from generation overcapacity, citing Ghana’s installed capacity of 5,500 megawatts against peak demand of only 4,080 megawatts.

The timing amplifies public frustration. FABAG Executive Chairman John Awuni noted the tariff hikes effectively cancel out the 9 percent base pay adjustment agreed for public sector workers in 2026. The marginal wage gains will be immediately eroded by increases in basic utilities.

Awuni warned the hikes will worsen the cost of living crisis, force small and medium enterprises to shut down, reduce employment and increase prices. He described ECG and GWCL as a real cancer in Ghana’s economic development, arguing they have become the very disease they were created to cure.

The Ghana Federation of Labour also condemned the increases as unfair, noting labour leaders were excluded from tariff adjustment consultations despite their roles in minimum wage negotiations.

Critics demand comprehensive reforms before any tariff adjustments. Proposed measures include full public audits of ECG and GWCL operations, time-bound plans to reduce losses with quarterly performance targets, stricter enforcement against theft and meter tampering, and improved transparency in billing practices.

The PURC justified the increases by citing rising operational costs, macroeconomic pressures and utility investment needs under its 2026 to 2030 Multi-Year Tariff Review. The Commission projected a 2026 generation mix comprising 78.79 percent thermal power, 20.90 percent hydroelectric and 0.31 percent renewable sources, with a weighted average cost of gas rising to US$7.8749 per MMBtu.

PURC Executive Secretary Dr Shafic Suleman explained the review followed investment hearings, stakeholder consultations and regional public forums. The Commission evaluated each utility’s regulated asset base to determine capital expenditure requirements between 2026 and 2030.

Aboagye vowed the Minority would use every legitimate parliamentary tool to demand fairness, transparency and accountability in utility management. The strategy could involve motions, urgent questions or special debates on the tariff adjustments’ impact and justification.

With modest wage increases, persistent inflation and thin business margins, many Ghanaians say they cannot absorb additional utility costs. The debate centers on whether regulators will prioritize accountability and reform over cost recovery, and whether citizens will subsidize mismanagement through their monthly bills.