Minority warns new utility tariffs could derail Ghana's 24-hour economy agenda

The Minority in Parliament has criticised the latest utility tariff adjustments, warning that the increases could undermine the government's flagship 24-hour economy programme and place additional pressure on businesses and households.

The Public Utilities Regulatory Commission's planned tariff review, which takes effect on 1 July 2026, includes a 3.49% increase in electricity charges and a 0.85% rise in water tariffs.

Addressing a news conference on Thursday, Deputy Ranking Member on Parliament's Energy Committee, Collins Adomako-Mensah, said the new rates would increase production costs for businesses and further weaken consumers' purchasing power amid existing economic challenges.

He argued that manufacturers, processors and small businesses were already operating under significant cost pressures and that higher utility bills would make it more difficult for them to remain competitive.

"Ghana's manufacturers, processors and small enterprises operate in one of the most tariff-burdened utility environments in West Africa," Mr Adomako-Mensah said.

"Every upward adjustment in electricity costs erodes their competitiveness, raises the cost of production and ultimately pushes prices higher for the very consumer the NDC claims to be protecting."

The Minority also questioned the impact of the tariff hikes on the government's ambition to expand economic activity through a round-the-clock production model.

According to Mr Adomako-Mensah, rising energy costs could discourage investment and limit the ability of industries to operate continuously, thereby affecting efforts to create jobs and boost industrial growth.

"The 24-hour economy cannot run on significantly more expensive electricity," he said. "Jobs cannot be created when the cost of powering a factory keeps climbing every quarter."

The opposition caucus further accused the administration of failing to match rising living costs with corresponding improvements in workers' earnings.

Mr Adomako-Mensah claimed that electricity tariffs had increased by a cumulative 26.82% since the government took office in January 2025, while workers had received a wage increase of only 10% over the same period.

"Since January 2025, electricity tariffs in Ghana have risen by a staggering 26.82%," he said. "Over the same period, the government awarded workers a meagre 10% wage increase — less than a third of the tariff burden placed on those very same workers."

The government has yet to respond to the Minority's latest concerns over the tariff adjustments.