Kadjebi: The recent proposal by the Public Utilities Regulatory Commission (PURC) to increase electricity and water tariffs has sparked widespread outrage among residents of Kadjebi in the Oti Region, with many warning that the move could severely impact livelihoods and force small businesses to shut down.
According to Ghana News Agency, the proposed adjustments, particularly in electricity tariffs, have caused anxiety among individuals and entrepreneurs whose operations are heavily dependent on electric power. Mr. Samuel Agbenu, a sharpening machine operator at Kadjebi Asito, a suburb of Kadjebi, expressed concerns that his business risks collapse if the new tariffs are approved. He stated, “I rely solely on electricity to run my sharpening business. If the tariffs go up as proposed, I may not be able to continue operating. It will throw my business out of gear.”
Similarly, Ms. Gloria Mensah, a cold store operator in Ahamansu, a farming community in the Kadjebi District, said her frozen fish business may not survive the tariff hike. She noted, “I depend on electricity to preserve my stock. If the tariffs are increased, I may not be able to pay the bills. This could force me to shut down the business.”
Several other residents who spoke with the GNA expressed similar sentiments, calling on the PURC and the government to reconsider the tariff proposal considering the economic challenges already confronting rural communities. They noted that with rising food prices, high transportation costs, and growing unemployment, the proposed tariff increment would only worsen the living conditions of ordinary Ghanaians.
The residents appealed for a more balanced and pro-poor tariff regime that considers the plight of small-scale business operators and vulnerable households. The PURC, which is mandated to review and approve utility tariffs in Ghana, has come under increasing public pressure to ensure that any adjustments reflect economic realities and do not disproportionately affect consumers.
As part of its mandate, the Commission must strike a balance between ensuring the financial sustainability of utility service providers and protecting consumers from excessive tariffs. The PURC recently approved a 1.14 per cent increase in electricity tariffs across all consumer categories, effective October 1, 2025, while water tariffs remain unchanged for the same period. This adjustment was carried out under the PURC’s Quarterly Tariff Review Mechanism, which considers key economic indicators such as the exchange rate, inflation, cost of natural gas, and energy generation mix.
Prior to PURC’s decision, utility providers had submitted steep proposals for review. Ghana Water Limited (GWL) proposed a 281 per cent increase in water tariffs, from approximately GHS5.28 to GHS20.09 per cubic metre. The Electricity Company of Ghana (ECG) also proposed a significant increase in its Distribution Service Charge (DSC1) – from GH?19.0875 pesewas/kWh to an average of GH?61.8028 pesewas/kWh, citing inflation, currency depreciation, and rising operational costs.
In response, the PURC assured the public that consumer interests would not be compromised and that any tariff adjustments would undergo thorough scrutiny before implementation. The Commission is continuing stakeholder consultations before finalising any long-term adjustments.