Mahama Ayariga Gives Reasons for Electricity Tariffs Hike: “ECG Will Collapse”

• The Public Utilities Regulatory Commission (PURC) announced an increase in electricity tariffs effective July 1, 2025
• Several Ghanaians, including the Minority in Parliament, have questioned the rationale behind the increase, considering that economic indicators are quite stable
• However, the government gave some explanation for PURC's approval of the upward adjustment of the tariff

The Majority Leader in Parliament, Mahama Ayariga, gave reasons for the 2.45% increase in electricity tariffs, which is expected to take effect from July 1, 2025.

Mahama Ayariga defended the increase in Parliament on Friday, 27, 2025, when he took to the floor to address some issues.

He indicated that the Public Utilities Regulatory Commission (PURC) agreed to the electricity tariff increase as part of the government’s strategy to solve the issue of the growing debt burden facing the Electricity Company of Ghana (ECG).

Many have argued that major economic indicators such as exchange rate, fuel prices and inflation have been relatively stable for a while, hence no need for the increase in tariffs.

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However, Mahama Ayariga explained that the upward price adjustment is important in order to aid ECG raise enough funds for a sustained operation. This, he added, will also help prevent a possible power crisis.

“Last year, there was an effort made to prevent the PURC from adjusting the tariff; due to that, there was no adjustment for the whole period. ECG is accumulating huge debt, and it has to be paid for, and if we do not adjust the tariff to enable ECG to pay, ECG will collapse. They won’t be able to buy the input needed to keep the generators on, and we are going to have power outages,” he explained.

Mahama Ayariga gave this explanation in response to the Minority’s concern about the need or otherwise for the upward adjustment despite the relatively stable macroeconomic indicators.

Mahama Ayariga stated that the Minister for Energy and Green Transition, John Jinapor, will be in Parliament next week to give further clarity on the tariff review.

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“The bill has to be paid. So if PURC is doing its work, I do not think there is a basis for saying that because we have improved the economy, it doesn’t mean that the debt at ECG will just be whisked away. The bill has to be paid partly by consumers,” he emphasised.

Watch the video below:

Ghanaians comment on Ayariga’s explanation

YEN.com.gh collated some reactions to the video on social media. Read them below:

Farabove Eyram said:

"Give us a break. Upon all this, they will come back with debt."

Anthony Joe Wastony wrote:

"6 months gone...3 years 6 months to go. Second independence is really independing."

Afful Manasseh said:

"Ghana politicians paa infact. One day one day if care is not taken, then is over."

Thompson Lamin wrote:

"If it's ECG just just make the increments from ECG... Why touch the fuel that you know will jam all the sectors in Ghana 🙏."

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PURC announces 2.45% increase in Electricity tariffs from July 1

Emefa Serwah Azure Aboagye said:

"Dada nnoaaaa. His mouth would’ve been very different in opposition."

Papa Ekow Obeng wrote:

"😂 the clerk get issues with honorable anaaaa? 😂 Eeeei."

No price drop despite Cedi's performance

YEN.com.gh reported that even though the Ghana cedi had appreciated by about 24%, the cost of living had not changed.

In Ho, for instance, transport fares and the cost of other items remained the same.

Drivers have cited fuel prices and maintenance costs as reasons for not lowering fares

Source: YEN.com.gh