The NDC government's justifications for the recent electricity tariff hikes, such as those implemented in Ghana in 2025 and early 2026 do not conform to the principles of power generation in engineering.

The reasons attributed to the tariff increases are perceived as deceptive, irrational, and insensitive, though notwithstanding the conditionalities imposed by the IMF, based on the following (11) facts.

Fact (1): As of late 2024–2025, Ghana's total power generation capacity constituted approximately 70% of thermal power generation, with over a dozen major plants (including IPPs), providing the bulk of the power, whereby the fuel prices for natural gas, coal, and oil directly affect the variable cost of generation.

Now, a thermal plant is a power station that converts heat energy into electricity, typically by burning fuels like coal, gas, or nuclear fuel to boil water, create high-pressure steam, and spin a turbine connected to a generator.

Fact (2): The principle of electricity tariff increases with regards to thermal plants is primarily driven by the need for cost reflectivity, ensuring that the high, often volatile or variable fuel costs, and fixed operating expenses are recovered, so as to prevent power supply deficits.

Fact (3): In the regions heavily dependent on thermal power, such as Ghana, these increases are designed to pass on the rising costs of natural gas, fuel, and foreign exchange depreciation directly to consumers to maintain the financial viability of power generators.

Fact (4): As of January 2026, the Public Utilities Regulatory Commission (PURC) implemented a 9.86% upward adjustment in electricity tariffs for all customer categories, following a new multi-year tariff review.

Fact (5): This increase followed a series of quarterly adjustments in 2025, which included a 14.75% hike in the second quarter and a 1.14% increase on October 1, 2025 with a justification that there's a need to maintain financial stability for service providers.

Fact (6): Again, the govt's justification for the 2026 hike was that, it aims to cover capital and operational expenditures for utilities over the next five years.

Fact (7): The global market crude oil price in December 2025 averaged roughly $60 per barrel, which is $11 per barrel lower than the ($74) average price in December 2024.

Fact (8): The projections for 2026 suggest a further decrease in average crude oil prices globally, with forecasts putting crude oil at around $52–$56 per barrel, due to rising global production and weak demand growth.

Fact (9): As of July 2025, the NDC government, through the Ghana Revenue Authority (GRA), implemented a new GH₵1 per litre fuel levy on petrol and diesel at the pump. Ghanaians were told that, the revenue is aimed at generating roughly GH₵5.7 billion annually to settle debts owed to independent power producers and to ensure a stable power supply (avert "dumsor").

Fact (10): Ghana's inflation fell 23.5% in December 2024 to 3.8% in January 2026, the lowest since 2021 and the 13th consecutive monthly decline.

Fact (11): The IMF data shows that the cedi appreciated by over 40% against the US dollar in 2025.

Now here are the questions:

Question (1): If an electricity tariff increase is directly linked with the corresponding increase in fuel prices, why must Ghanaians continue to experience constant hikes in electricity tariffs with fuel prices unabatedly decreasing globally in the last 12-months? This totally defies the logics and principles of power generation in engineering.

Question (2): When the local currency (cedi) weakens against major currencies like the US dollar, it automatically affects the fuel prices locally and operational costs for power utilities, especially thermal power plants, which usually leads to upward adjustments in electricity tariffs. However, consistently on record, the Ghanaian local currency (cedi) has significantly appreciated against the dollar in last 12 months.

Therefore, why must Ghanaians continue to see constant increases in the electricity and other utility tariffs?

Question (3): If the govt has implemented a GH₵1 per litre fuel levy on petrol and diesel, aimed at generating roughly GH₵5.7 billion annually to settle debts owed to independent power producers, this should totally decrease the rate in which the electricity tariffs increase. Unfortunately, the opposite is what Ghanaians are seeing. Why?

Now, juxtaposing all the indicators or factors aforementioned, the logical conclusion by any critical power expert is that, there must be no persistent increase in electricity tariffs, rather a reduced one or a stable tariff is expected.

We all know now that, electricity has become a fundamental, indispensable resource in modern human life, and as an engineer, specialised in electrical power generation, transmission and distribution, I believe that the utility providers must cover their operational expenses, maintain infrastructure, and remain financially viable to avert any catastrophic power outages and ensuring reliable service delivery; however, I do not subscribe to the government’s bullying tactics and deceptive means to collect money from the ordinary Ghanaian citizens, knowing that they have no other choice than to pay for tge exorbitant electricity tariffs.

My recommendations to the government:

In order to reduce over-dependence on Independent Power Producers (IPPs), which currently contribute over 50% of power generation in Ghana, creating significant financial burdens and energy insecurity with potential risks of operational cutbacks due to accumulated debts, which can lead to power shortages, industrial downtime, and diminished investor confidence; I would strongly recommend that, every government, should target to generate at least 2000MW in addition to the national grid within its four-year tenure, by so doing, expand the state-owned power generation capacity.

This paradigm shift, would enhance energy security in Ghana, reduce excessive capacity payments, and ensure a more stable, affordable energy supply and use that to bargain well on prices with the IPPs.

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