The Centre for Environmental Management and Sustainable Energy (CEMSE) has revealed that Ghanaian electricity consumers may have overpaid an estimated GH¢1.5 billion in the fourth quarter of 2025.
According to CEMSE, the overpayment resulted from inflated exchange rate and inflation assumptions used in tariff calculations by the Public Utilities Regulatory Commission (PURC).
“We needed to understand if the tariff increments actually improved ECG’s revenue. What we realised is that the increase did not improve revenue in any meaningful way. It only burdened consumers and Ghanaians at large,” the report stated.
CEMSE explained that PURC applied a projected exchange rate of GH¢11.9735 to the dollar for Q4 2025, which was later adjusted to GH¢12.3715 to account for under-recovery claims. However, the actual average exchange rate during the period was GH¢10.8733, resulting in an over-recovery of GH¢1.1002 per dollar.
“When applied to total quarterly electricity consumption, consumers effectively paid for costs utilities did not incur — roughly GH¢1.5 billion,” Nsiah explained.
The report also pointed to discrepancies in inflation assumptions. While PURC applied a 12.43 percent annual inflation rate, the actual quarterly average stood at 6.6 percent — nearly half the projected figure.
CEMSE further noted that successive tariff increases have not guaranteed stable revenue for the Electricity Company of Ghana (ECG). Revenue fluctuated from GH¢1.4 billion in April 2025 to GH¢1.3 billion in May after a 14.75 percent hike, peaked at GH¢1.6 billion in June, and dropped again to GH¢1.3 billion in August.
The organisation is therefore calling for a tariff reduction of about 11 percent in the first quarter of 2026 to reflect current economic conditions, with the exchange rate now around GH¢10.99 to the dollar and projected inflation at 3.4 percent.
“Over-recoveries should be formally recognised and credited to consumers before new tariff adjustments are introduced. Failure to act could erode public confidence in the regulatory framework and increase pressure on households and businesses,” he emphasised.
Source: adomonline.com
