The government of Ghana has agreed to reduce the increase in electricity tariffs (+59%) announced by Ghana's utility regulator Public Utilities Regulatory Commission (PURC) in December 2015 for two categories of consumers.
Electricity tariffs will rise by 45% for consumers within the 0-50 units band (lifeline) and by 50% for those within the 51-300 units band. For all other consumers, the previously announced 59% increase in tariffs will be applied.
The increase is aimed at attracting private investment in the power sector and at resolving the chronic power crisis (shortfall of up to 500 MW). It is also aimed at covering increasing power generation costs, as thermal power generation is progressing to the detriment of cheap hydropower. It will be implemented in a few months, to allow the PURC to sensitise the public, and is likely to fuel consumer inflation, which stood at a four-year high of 17.4% in October 2015.