The International Monetary Fund (IMF) has stated that the proposed upward adjustments by utility companies are vital to fixing inefficiencies and attracting investment into the country’s electricity sector.
According to Julie Kozack, the IMF’s Director of Communications, the fund is in total support of these adjustments.
Speaking to journalists in Washington, D.C., on Thursday, September 11, 2025, she explained that the IMF’s support is part of the broader goal of restoring financial stability in the energy sector.
“What is essential from our perspective is that any tariff adjustments in the electricity sector aim to address longstanding inefficiencies in the sector, importantly, that they support much-needed investment in the electricity sector, and also that they are aimed at preventing the accumulation of arrears in the energy sector,” she explained.
“More generally we are continuing to support broader sector reforms including private sector participation in ECG operations,” she said.
Julie Kozack indicated that the reforms are needed to improve the performance of state-owned enterprises and reduce fiscal risks.
It is not automatic for ECG, GWCL to have their proposed adjustments approved – Mahama
Meanwhile President John Dramani Mahama has posited that the tariff increases proposed by the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) are not guaranteed to be approved.
During a media encounter at Jubilee House on September 10, 2025, President Mahama addressed a question from a journalist regarding the potential impact of these hikes on his administration’s “24-hour economy” initiative.
Both the ECG and GWCL have cited rising operational costs as the reason for their requests. At public hearings hosted by the Public Utilities Regulatory Commission (PURC), the ECG has proposed a 225% increase in its distribution service charge (DSC-1), from 19 pesewas to 61 pesewas per kilowatt-hour.
Similarly, the GWCL is seeking a 280% tariff increase, attributing the need for this adjustment to the high cost of treating water polluted by illegal mining, or galamsey.
The president stated that Ghana’s Public Utilities Regulatory Commission (PURC) conducts periodic reviews of proposals submitted by utility companies like Ghana Water and the Electricity Company of Ghana (ECG).
He noted that the proposed adjustments are not automatically implemented.
The PURC, as the regulator, considers various factors, including the exchange rate and production costs, to determine an acceptable tariff increase. Therefore, a proposal for a significant increase, such as Ghana Water’s proposed 200 percent hike, does not guarantee its approval by the PURC.
The president also mentioned that similar scrutiny applies to ECG’s proposed tariff adjustments.
