The Public Utilities Regulatory Commission (PURC) has approved new electricity and water tariff increments to take effect from January 1, 2026.
The adjustments follow the conclusion of the 2026–2030 Multi-Year Tariff Review, carried out in line with the PURC Act of 1997. According to the Commission, the review was necessary to support critical investments in the utility sector while taking into account the current economic pressures facing consumers.
Under the revised structure, electricity charges will rise by 9.86% across all customer categories. Water tariffs will also see an increase of 15.92% during the same period.
The PURC noted that the major tariff review cycle, conducted every three to five years, evaluates both capital expenditure (CAPEX) and operational expenditure (OPEX) needs of utility companies. This is separate from the quarterly tariff reviews, which focus primarily on short-term operational variables including inflation, exchange rate movements, fuel costs, and changes in the power generation mix.
The Commission said the latest review was guided by several key considerations, including the investment requirements of utility providers between 2026 and 2030, prevailing macroeconomic conditions, the rising cost of natural gas, feedback from stakeholders, and issues raised during regional public hearings.
It added that quarterly tariff adjustments will continue to apply to cushion utilities from unforeseen cost increases while preventing sudden price shocks for consumers.
As part of the new Multi-Year Tariff Order (MYTO), the PURC has also introduced a dedicated mini-grid tariff. This aims to support electricity delivery to island and remote communities by factoring their service costs into the Volta River Authority’s revenue framework.
The newly approved tariffs are expected to remain in place until 2030, barring any changes resulting from quarterly adjustments.
The PURC assured the public that the revised tariff system is designed to maintain the financial stability of utility companies while ensuring pricing remains fair and reasonable for households and businesses.