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Cedi Appreciation:Mahama must Reduce Electricity Tariffs – Paul Twum Barimah
The former Member of Parliament for Dormaa East, Paul Apraku Twum Barimah, has indicated that the ongoing stabilization of the cedi must lead to reduction in electricity tariffs.
The Ghanaian cedi has experienced a significant appreciation against the U.S. dollar in recent months, prompting calls for a corresponding reduction in electricity tariffs.
Despite this currency strength, the Public Utilities Regulatory Commission (PURC) implemented a 14.75% increase in electricity tariffs effective May 3, 2025, citing factors such as exchange rate fluctuations, inflation, and fuel costs.
Cedi’s Upward Trajectory
As of May21st, the cedi strengthened to GHS12,22 per U.S. dollar, marking a 8.44% year-to-date gain from GHS16.53 in November 2024. This appreciation is attributed to several factors, including the Bank of Ghana’s $490 million in forex interventions, increased gold reserves, and improved gross international reserves, which stood at $9.4 billion in March 2025, up from $6.2 billion a year prior.
Tariff Hike amid Currency Strength
The PURC’s recent tariff adjustment was based on a weighted average exchange rate of GHS15.6974 per U.S. dollar, higher than the current rate. The Commission cited the need to recover 50% of an outstanding revenue shortfall of GHS976 million from previous quarters in 2024 as a significant factor influencing the increase.
Stakeholder Reactions
The Ghana Hotels Association and the Ghana Union of Traders’ Association (GUTA) have expressed concerns over the tariff hikes. The Hotels Association highlighted that electricity accounts for over 20% of operational expenses, warning that the increase could threaten business sustainability. GUTA criticized the PURC’s decision as unjustified, pointing to inefficiencies in the utility sector that burden consumers.
Calls for Tariff Reassessment
Given the cedi’s appreciation, stakeholders argue that electricity tariffs should be reassessed to reflect the reduced cost of importing fuel, which is priced in U.S. dollars. They contend that if currency depreciation justifies tariff increases, then appreciation should logically lead to reductions, providing relief to consumers and businesses alike.
Looking Ahead
“As the cedi continues its upward trend, there is growing pressure on the PURC to consider these gains in future tariff reviews. Stakeholders advocate for a transparent and responsive pricing mechanism that aligns with economic indicators, ensuring that consumers benefit from favorable market conditions,” he stated.
Government has inaugurated a Technical Committee to drive the implementation of the Accra Marine Drive Tourism Investment Project, a key initiative aimed at transforming the capital’s waterfront into a world-class tourism and commercial hub.
Minister for Tourism, Culture and Creative Arts, Abla Dzifa Gomashie, described the move as a critical step to accelerate progress, stressing the need for efficiency, collaboration, and accountability.
The Committee, chaired by Deputy Minister Yussif Issaka Jajah, will coordinate stakeholders, address bottlenecks, and ensure timely delivery of the project.
The initiative is expected to boost tourism, create jobs, and stimulate economic growth, reinforcing Ghana’s commitment to sustainable development.
The Ghana National Fire Service (GNFS) has stepped up its fire safety education efforts in Suhum Municipality and Abetifi Odwenease as part of ongoing campaigns to prevent fire outbreaks and improve emergency readiness.
In Suhum, fire officers engaged traders and customers, educating them on handling LPG leakages, proper use of fire extinguishers, and general shop safety practices. Meanwhile, the Kwahu East Command extended outreach in Abetifi Odwenease, visiting homes, drinking spots, construction sites, and stores to promote safe handling of flammable materials, proper electrical usage, and correct gas cylinder placement.
Practical demonstrations on fire extinguisher use were conducted, and residents were encouraged to adopt good housekeeping habits and proactive safety measures to reduce fire risks and protect lives and property.
