Minority in Parliament Opposes Planned Utility Tariff Increases, Argues Policy Will Undermine 24 Hour Economy and Deepen Cost of Living Pressures
The Minority in Parliament has expressed strong opposition to the proposed upward adjustment in utility tariffs scheduled to take effect on July 1, 2026, arguing that the increases will significantly weaken the government’s flagship 24 hour economy policy while worsening economic conditions for households and businesses.
According to the Minority caucus, the planned adjustments, which include a 3.49 percent increase in electricity tariffs and a 0.85 percent increase in water tariffs, will add to the cost burden faced by consumers and further strain industrial operations across the country.
Speaking to journalists on Thursday, June 25, the Deputy Ranking Member on the Energy Committee, Collins Adomako-Mensah, argued that the tariff increases will erode business competitiveness and place additional pressure on production costs at a time when industries are already grappling with high operational expenses.
He stated that Ghana’s manufacturing and processing sectors operate within a utility pricing environment that is already considered high relative to regional peers, and that any further increase risks reducing their ability to compete effectively within both domestic and export markets.
He further warned that the rising cost of electricity could have direct consequences for the implementation of the 24 hour economy initiative, particularly in relation to industrial expansion, continuous production cycles and job creation targets that depend on affordable and stable energy supply.
According to him, sustained increases in electricity tariffs will make it increasingly difficult for factories to operate on a round the clock basis, thereby limiting the practical rollout of the policy.
The Minority also argued that recent tariff trends indicate a broader pattern of rising utility costs under the current administration. They claimed that electricity tariffs have increased cumulatively by 26.82 percent since the government assumed office in January 2025.
They further contrasted this with wage adjustments for public sector workers, arguing that the 10 percent salary increase granted over the same period does not sufficiently offset the rising cost of utilities, thereby reducing real income and purchasing power.
The caucus maintained that this imbalance places additional pressure on households, particularly low and middle income earners who already face inflationary challenges and higher living expenses.
From their perspective, the combination of rising utility tariffs and modest wage growth could undermine consumer demand, weaken industrial output and slow down broader economic recovery efforts.
The Minority therefore urged government to reconsider the timing and impact of the proposed tariff adjustments, insisting that energy pricing must be aligned with national industrial policy objectives if initiatives such as the 24 hour economy are to succeed.
They cautioned that without careful balancing of energy costs and economic policy ambitions, Ghana risks creating structural constraints that could limit productivity growth and job creation in key sectors of the economy.
The development adds to ongoing national debates over utility pricing, industrial competitiveness and the feasibility of implementing a continuous production economy in a context of rising operational costs.
