New Year, Higher Bills: PURC Hikes Electricity by 9.86%, Water by 15.92%—Ghanaians Brace for Impact
As new rates for water and electricity go into effect, consumers will have to pay more for their utilities. Ghanaians are starting the New Year with higher utility bills because the Public Utilities Regulatory Commission (PURC) raised the rates for electricity and water on January 1, 2026.
Electricity rates have gone up by 9.86% and water rates have gone up by 15.92% under the new rates. The changes come after the completion of the PURC’s Multi-Year Tariff Review (MYTO) for 2026–2030.
The Commission said that the new tariffs will start in the first quarter of 2026 and are part of a framework that lets the tariffs be reviewed every three months.
Many families and businesses are still having a hard time with high living costs, rising food prices, and slow income growth, so these increases come at a bad time.
After a hard year in 2025, utility costs go up.
The most recent increases come after a tough year in 2025, when electricity prices went up by 18.34% and water prices went up by 4.02%.
For a lot of families, the new changes are just another strain on their already tight budgets. People who run small businesses and work in the informal sector say that higher bills for electricity and water will either cut into their profits or make them raise their prices.
Manufacturers and agro-processing companies have also said that rising utility costs will make it more expensive to make things and make it harder for locally made goods to compete.
Effect on prices and production
Electricity is still a key input for many parts of the economy, such as mining, manufacturing, hospitality, and services. The 9.86 percent rise across all customer groups is likely to raise operating costs, which could be passed on to customers.
Food and drink production, pharmaceuticals, textiles, and construction are some of the industries that depend on water the most. They are also getting ready for the 15.92 percent rise in water tariffs.
Economists say that when utility rates go up for a long time, prices for other goods and services tend to go up as well because higher production costs are passed on to consumers. The new tariffs could make things worse for low- and middle-income families, especially since inflation is still a problem.
PURC explains why the prices went up.
The PURC said in a statement that the changes to the tariffs came after months of public forums, stakeholder consultations, and investment hearings held all over the country.
The Commission says that the review looked at the investment needs of utility companies, expected production inputs, and important economic indicators like inflation, the exchange rate, and fuel costs.
The PURC said that the approved tariffs for electricity are based on a projected mix of power generation that includes 78.79 percent thermal energy, 20.9 percent hydro energy, and 0.31 percent renewable energy.
The review also took into account a higher Weighted Average Cost of Gas, which was set at US$7.8749 per MMBtu, as well as goals to cut down on losses in transmission and distribution.
The macroeconomic assumptions include an inflation rate of 8% and an exchange rate forecast of GH₵12.01 to the US dollar.
Changes and new things in the water sector
The Public Utilities Regulatory Commission (PURC) said that the 15.92 percent rise in water rates was based on expected levels of production, expected capital investments, and efforts to cut down on non-revenue water.
Under the new framework, it is expected that non-revenue water, which comes from leaks and illegal connections, will drop to 43 percent.
Residential users will pay more for all levels of use, and commercial, industrial, and public institutions will also have to pay more. It is likely that service fees will stay about the same.
For the first time, the tariff review includes fees for mini-grids that serve communities on islands and in remote areas. The Volta River Authority needs more money to support fair access to electricity. This is because it costs more to supply these areas at the same rates across the country.
Quarterly reviews will keep going on.
The PURC said that quarterly tariff reviews will keep happening so that changes in things like fuel prices, exchange rates, and power generation can be made.
The system is supposed to keep utility companies from losing money, but many customers are worried that regular reviews could lead to regular price hikes that make it hard to plan their budgets.
As 2026 begins, households and businesses are getting ready for higher utility bills. There are more and more calls for better consumer protection, more efficient utility operations, and bigger economic changes to make life easier for Ghanaians.
