The Minority in Parliament has expressed reservations regarding the recent downward adjustment of electricity and water tariffs by the Public Utilities Regulatory Commission (PURC), contending that the reductions are insufficient to significantly alleviate the financial pressures faced by consumers. The PURC announced an average decrease of 4.81% in electricity tariffs and 3.06% in water tariffs, effective April 1, 2026, as part of its routine quarterly review mechanism.
In a formal response to the announcement, the Deputy Ranking Member of Parliament’s Energy Committee, Collins Adomako Mensah, acknowledged the adjustment but argued that the scale of the reductions falls short of public expectations. He emphasized that, in the view of the Minority, the modest tariff changes do not adequately correspond to prevailing economic challenges affecting households and businesses.
The Minority’s position is further supported by its analysis of PURC’s quarterly data for 2025, which it claims reveals a pattern of overestimation in key macroeconomic indicators, particularly inflation and exchange rate projections. According to this assessment, such discrepancies may have influenced tariff-setting decisions in ways that disadvantaged consumers. For instance, projected inflation rates reportedly exceeded actual figures across multiple quarters, with notable deviations observed in both the first half and later part of the year.
Within this context, the Minority argues that the current tariff reductions do not sufficiently offset the cumulative impact of rising fuel and energy costs. It maintains that more substantial adjustments—potentially in the range of up to 10%—would be necessary to provide meaningful economic relief.
While the PURC’s adjustments are consistent with its mandate to periodically align tariffs with macroeconomic conditions and sectoral costs, the Minority’s critique highlights ongoing concerns about the effectiveness of such revisions in addressing broader cost-of-living challenges. As economic pressures persist, discussions surrounding the adequacy and methodology of utility tariff adjustments are expected to remain a subject of public and policy debate.
Story: Lawal Mohammed
