TUC Unhappy with PURC, Condemns New Electricity Tariff Hike
The Trades Union Congress (TUC) has strongly criticized the recent 2.45% upward adjustment in electricity tariffs, accusing the Public Utilities Regulatory Commission (PURC) of manipulating key calculations to justify the increase, despite macroeconomic improvements that should have led to a reduction.
In a statement issued in Accra, the TUC expressed disappointment with PURC’s decision, especially given the significant appreciation of the Ghana cedi and recent drops in inflation and fuel prices. According to the union, PURC inexplicably adjusted the exchange rate upwards from GHS12.13/$1 to GHS13.71/$1, despite the cedi appreciating to GHS11.97/$1 as of mid-June 2025. This manipulation, the TUC argued, is part of a pattern of poor regulatory transparency and unfair decision-making.
“By all indications, the exchange rate is trending downwards. PURC’s use of an inflated exchange rate is unacceptable and undermines the economic progress Ghana has made,” the statement read.
The TUC also took issue with the removal of inflation from the tariff calculation formula. They argued that since high inflation in previous quarters had been used to justify sharp tariff increases, the recent decline in inflation should likewise have warranted a reduction—not another hike. “If inflation is good enough to be included when prices are rising, it must be equally valid when inflation is falling,” the union stated.
The labor union further accused PURC of prioritizing the financial interests of utility providers over the public, noting that the tariff increases continue to weigh heavily on households and businesses already struggling with high living costs.
The 2.45% increase, announced by PURC on June 30, 2025, takes effect on July 1, 2025. It follows a series of quarterly reviews in which utility tariffs have largely seen upward adjustments, in line with the commission’s Automatic Adjustment Formula, which factors in variables like inflation, fuel prices, and exchange rate fluctuations.
But the TUC insists that this latest adjustment is unjustifiable. The union is calling on the PURC to immediately review the decision and instead implement a reduction in electricity tariffs that reflects current macroeconomic improvements. They also demand more transparency in tariff-setting processes and better consultation with consumer groups and labour unions going forward.
The statement concluded with a warning that if the situation persists, the TUC would not hesitate to explore further actions to protect the interests of workers and the broader Ghanaian public.
