STORY BY: Mabel Adorkor Annang
Ghana’s electricity tariff regime has been ranked among the best-performing in Africa, according to a new comparative study by the Public Utilities Regulatory Commission (PURC).
The analysis, conducted under the PURC Act 1997 (Act 538), positions Ghana as one of the continent’s most balanced and reform-oriented countries in electricity pricing.
The study, which analyzed tariff data across selected African nations as of March 2025, highlights Ghana’s hybrid cost-reflective tariff system as one that ensures both financial sustainability for utilities and fairness to consumers.
The PURC determines tariffs based on the actual costs of generation, transmission, and distribution, ensuring the country’s electricity sector remains stable while protecting low-income households through a lifeline tariff. Compared to other regions, Ghana’s tariffs sit around the continental median.
They are lower than those in South Africa and Namibia, higher than heavily subsidized systems such as Egypt and Ethiopia, and moderate within the West African subregion.
The report notes that Ghana’s strong regulatory framework contributes to greater tariff stability and cost recovery than many of its neighbors.
The PURC’s approach, which combines cost-based and incentive-driven regulation, places Ghana alongside countries like Kenya and South Africa that emphasize transparency, efficiency, and financial sustainability.
The Commission says its periodic tariff reviews are key to reflecting fuel prices, exchange rate changes, and operational efficiency, ensuring long-term reliability and competitiveness of Ghana’s electricity sector.
