PURC cuts power tariffs by 4.81%, unveils EV charging rate

By Kizito CUDJOE

Electricity tariffs will fall by 4.81 percent and water tariffs by 3.06 percent from April 1 when the country introduces its first commercial tariff for charging electric vehicles (EVs), the Public Utilities Regulatory Commission (PURC) has announced.

The public utilities regulator said this downward adjustment followed improvements in the cedi–dollar exchange rate and inflation, although the cost of natural gas used in thermal power generation rose slightly during the review period.

The reduction offers modest relief to consumers following steep tariff increases announced late last year, but the scale of the cut suggests households and businesses may see only limited changes in their monthly utility bills.

The decision also signals early regulatory preparation for electric mobility, with PURC introducing a dedicated EV charging tariff  as part of broader efforts to support the country’s transition to cleaner transport.

This decision aligns with the National Electric Vehicle Policy, which aims to decarbonise the transport sector by achieving 35 percent EV penetration in new vehicle sales by 2035 before transitioning to a full ban on imported internal combustion engine vehicles by 2045.

The latest adjustment follows the final quarter of 2025 tariff review, which saw a 9.86 percent increase in electricity tariffs and a 15.92 percent rise in water rates. Those rates took effect from January 1, 2026 as part of the tariff framework expected to run through the 2026–2030 tariff period.

At the time, the Commission cited a need to safeguard essential utility services as providers sought fresh investment to stabilise supply and maintain infrastructure.

Explaining the latest review, PURC said this adjustment is consistent with its mandate to undertake quarterly tariff reviews to reflect changes in key economic and operational indicators.

“The quarterly reviews track and incorporate movements in key factors whose variability affects the operations of utility service providers,” the Commission said.

In its analysis, the regulator applied a projected weighted average exchange rate of          GH¢11.1931 to US$1 for the second quarter of 2026. This rate is based on the three-month interbank average selling rate recorded between December 1, 2025 and February 28, 2026.

The figure represents a 6.78 percent improvement from the previous quarter’s rate of        GH¢12.0067 to the dollar.

On inflation, the Commission used a three-month average rate of 4.17 percent over the same period, representing a 47.87 percent decline compared with the previous quarter’s benchmark.

However, the Weighted Average Cost of Gas (WACOG) rose slightly to US$8.0988 per MMBtu – reflecting a 2.84 percent increase from the previous price of US$7.8749 per MMBtu.

The Commission also maintained the hydro-thermal generation mix used under the 2025 Multi-Year Tariff Order (MYTO), with 20.90 percent from hydro sources and 79.10 percent from thermal generation.

Based on the combined effect of these variables including the exchange rate, inflation, fuel costs and generation mix, the Commission said electricity tariffs will be adjusted downward across all customer categories on a weighted average basis for the quarter.

Water tariffs have also been reviewed downward by 3.06 percent for the second quarter of 2026.

The statement, which was signed by Executive Secretary Shafic Suleman, assured that PURC will continue monitoring the operations of regulated utility providers and enforce its benchmarks to ensure value for money and improved quality of service delivery for consumers.

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