Tax analysts are renewing calls for comprehensive, long-term reforms at the Electricity Company of Ghana (ECG), warning that continuous tariff hikes cannot remain the default solution to the utility’s persistent operational and financial shortcomings.
Their concerns come after the Public Utilities Regulatory Commission (PURC) announced new tariff adjustments that will increase water tariffs by 15.9% and electricity tariffs by 9.8%, effective January 1, 2026.
In an interview with Citi Business News, tax analyst Francis Timore said the water tariff increment may be justified, pointing to the significant cost pressures caused by illegal mining activities. He argued that the consequences of galamsey have created unavoidable financial burdens for Ghana Water Company Limited (GWCL).
“The realities we face stem from the state’s inability to curb illegal mining. These are not operational failures by Ghana Water but spillovers from broader governance challenges. In that sense, the water tariff increase, though unfortunate, reflects unavoidable external costs,” he said.
However, Mr. Timore stressed that the same reasoning does not apply to the electricity sector, insisting that ECG’s challenges are largely self-inflicted.
“At the distribution level, numerous long-standing inefficiencies remain unaddressed. Technical and commercial losses, billing inconsistencies, revenue leakages from power theft, and managerial gaps continue to undermine ECG,” he noted.
Analysts argue that until ECG confronts these deep-rooted problems, further tariff hikes will only place additional strain on consumers without delivering lasting improvements in service delivery.
0 Comments